Tamil Nadu doctor loses Rs 76.5 lakh to online stock trading scam; here's what happened

India is grappling with an alarming rise in online investment scams, with fraudsters luring unsuspecting individuals into fake investment schemes by exploiting the appeal of quick profits. In a recent case, a government doctor from Tamil Nadu was defrauded of Rs 76.5 lakh after clicking on a YouTube ad that promised expert stock market guidance.

The victim, reportedly an associate professor at a Government Medical College, clicked on a YouTube advertisement promoting online trading tips. He was then redirected to a WhatsApp group where multiple individuals, posing as seasoned investors, discussed stock market strategies and shared screenshots of fictitious profits. Seeing an opportunity to learn from these “experienced” investors, the doctor engaged with the group, as reported by The Hindu.

In the beginning, the doctor was introduced to basic trading concepts within the group, which added to the credibility of the operation. Managed by a person named “Diwakar Singh,” the group leader frequently shared stock tips, offering advice on both short- and long-term investments. Gaining the doctor’s trust over time, the group encouraged him to open an account on an online trading platform they claimed was legitimate.

False Security and Fraudulent Promises

The group members assured the victim that his investments would be directed toward prominent Indian and U.S. stocks, with promises of up to 30% profit margins. Convinced by these assurances, the doctor began transferring funds to an account shared by the scammers. Over a span of just three weeks in October, he ended up sending close to Rs 76.5 lakh.

However, when the doctor attempted to withdraw Rs 50 lakh on October 22, he was blocked by an unexpected requirement—a demand for an additional Rs 50 lakh “fee” from a fictitious “Qualified Institutional Buyers Association” to release his funds. Realising he had lost control over his money, the doctor reported the scam to local authorities.

Rising Threat of Online Investment Scams

This case is one of many recent incidents highlighting the spread of online trading scams across India. Fraudsters are targeting vulnerable individuals, particularly those eager to boost their finances through stock market investments. Cybercrime authorities are advising the public to exercise caution around online ads that promise substantial returns with minimal effort.

“First they share tips, then they steal money,” warned a recent investigation into online stock market scams. Law enforcement and cybersecurity experts advise avoiding unsolicited links, refraining from sharing financial information in unverified groups, and consulting certified financial advisors when seeking guidance. As always, “If an offer sounds too good to be true, it probably is,” they warn.