Retired MNC Official Fall Victim to Stock Trading App Fraud, Loses Rs 10 Crore
A 65-year-old retired official from an Indian multinational conglomerate lost Rs 10 crore in a sophisticated stock trading app fraud. The scam involved high returns and blocked withdrawals, highlighting the growing threat of cyber fraud in the financial sector.
Stock Trading AppCyber FraudFinancial SecurityInvestor ProtectionRetireesReal Estate MumbaiNov 12, 2025
The woman persuaded the retired official to join several WhatsApp groups where information about share trading and IPOs was shared. She also sent him a link to download the stock trading app, 'AR Trade Mobi.' The victim started investing through the app, transferring a total of Rs 9.94 crore between June and November.
Initially, the app showed that he was earning high returns, which further encouraged him to continue investing. However, he soon discovered that he could not withdraw his money. When he reached out to the so-called investment firm for assistance, they repeatedly asked him to transfer more money under various pretexts, arousing his suspicion.
Eventually, the fraudsters stopped responding to his messages and calls. Frustrated and concerned, the victim approached the Cyber Police in Shivajinagar, Mumbai. A First Information Report (FIR) was registered against the unidentified individuals, and the investigation is currently underway.
This incident highlights the growing threat of cyber fraud in the financial sector, particularly among retirees and other vulnerable groups. Financial literacy and awareness about potential scams are crucial to safeguarding one's investments. Regulators and law enforcement agencies are increasingly focusing on combating such fraudulent activities to protect investors and maintain the integrity of the financial market.
In the digital age, it is essential for individuals to verify the authenticity of investment opportunities and to exercise caution when dealing with unknown entities. Regular updates on financial news and staying informed about the latest scams can help investors make more informed decisions and avoid falling prey to such sophisticated frauds.
Frequently Asked Questions
How can I verify the authenticity of a stock trading app?
To verify the authenticity of a stock trading app, check if it is registered with regulatory bodies like SEBI. Look for reviews and ratings from other users, and ensure the app has a secure and transparent transaction process.
What should I do if I suspect a fraud?
If you suspect a fraud, immediately stop any further transactions and report the incident to the cyber police or the relevant financial regulatory authority. Keep all records and communications related to the fraud for evidence.
How can I protect myself from investment scams?
To protect yourself from investment scams, always research the investment opportunity thoroughly, verify the credentials of the investment firm, and consult with a financial advisor. Be wary of unsolicited offers and high-return promises.
What are the common red flags of a stock trading app scam?
Common red flags include high returns with no risk, pressure to invest quickly, difficulty in withdrawing funds, and lack of transparency in the app’s operations. Always be cautious if these signs are present.
How can I stay informed about the latest financial scams?
Stay informed by following financial news, subscribing to alerts from regulatory bodies, and joining reputable financial forums. Regularly updating your knowledge can help you avoid falling victim to new scams.
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