When 59-year-old chef Sumit Kumar from
Delhi -then working in Uttarakhand liked a Facebook video in June about
investing, little did he know that one click would cost him a life-changing
amount. He ended up losing ₹38 lakh, borrowed from his wife and via gold
loans, believing he was investing to send his daughter abroad for studies.
His story is not unique. In the past six months, around 30,000 people across
India lost approximately ₹1,500 crore to similar investment scams.
The Allure
of High Returns: Why He Took the Trap
Chef Kumar dedicated his off-days to watching
investment videos. One day, after liking a video by a financial advisor, he was
contacted via WhatsApp, introduced to a person claiming to work with a renowned
asset-management firm. The website looked legit complete with the regulator’s
registration number and he even received login credentials. He was added to a WhatsApp group of about 45
members, where daily trade tips were given, including buy/sell calls. The
numbers were tempting: his first investment of ₹2 lakh apparently grew 20 % on
the fake dashboard. He was lured to invest more, culminating in a total
commitment of ₹38 lakh. Given the
stock-market boom in India and the surge in retail investments (for example,
about 200 million Demat accounts in June), the scammers found fertile ground.
The Scam
Unraveled: How the Fraud Worked
The scam was elaborate:
A website mimicking the real asset-management
firm was created. It carried fake regulator registration numbers.
The victim was placed in a WhatsApp group with
“members” claiming large profits, building perceived trust.
Initial small investments and fake returns
were shown to encourage larger investments. Then, when withdrawing was
attempted, additional “service charges” or “unlock fees” were demanded.
The money was distributed swiftly into mule
accounts hundreds or thousands of layered bank
accounts, making tracing difficult. In Kumar’s case: the ₹38 lakh was split
into 15 bank accounts, then to 250 accounts, then over 20,000 accounts.
Regulators like Securities and Exchange Board
of India (SEBI) have flagged tens of thousands of misleading social-media posts
and fake influencer content.
The
Fallout: Family, Finances & Frustration
Chef Kumar borrowed heavily: ₹3 lakh from his
wife, and a gold loan of ₹25 lakh. He hoped this investment would fund his
daughter’s overseas education. Instead, he ended up under financial stress. He
filed an FIR, but it took over a month after being lodged before the fake
website used against him was blocked. Although
roughly half (about ₹19 lakh) of his funds have been traced and frozen with
cyber-help, the rest remains in the void. Investigations continue. Chef Kumar
says the police process has been slow and the portals and helplines often
confusing.
Key
Patterns in Modern Investment Scams
Social media bait: A like, a
comment or a follow becomes the entry point. Scammers know how to track and
target people via social-media platforms.
Clone websites/apps: Fake
websites are built to mimic real firms. They carry fake licenses and
registration numbers.
Group persuasion: WhatsApp
groups show early “profits,” push further investment, create peer-pressure.
Layering and mule accounts: Money is
split across multiple accounts (often many thousands) and sometimes converted
into crypto, making retrieval harder.
Regulatory gaps and enforcement delays: Websites
can stay live for weeks; perceived legitimacy remains.
Deepfakes and impersonation: Videos or
audio files mimicking real experts or influential people are increasingly used.
What the
Regulators Are Doing
SEBI has issued caution notices about
stock-market scams via social media platforms. It has flagged more than 100,000 misleading
social-media posts in 18 months and is introducing new UPI safeguards, ‘SEBI
Check’ verification tools, and local offices to monitor fraud.
Investor-education campaigns by bodies such as National Institute of Securities
Markets (NISM) highlight red-flags: promises of high returns, lack of economic
activity, unregulated entities.
How You Can
Protect Yourself
Check credentials: Verify
that any intermediary or asset manager is registered and genuine. Use ‘SEBI
Check’ or official lists.
Avoid “sure returns” & pressure tactics: If
someone promises unbelievably high returns with little risk, that’s a red-flag.
Beware of look-alike websites/apps: Always
double-check URLs, firm names, registration numbers. One letter difference may
mask a scam.
Be cautious with social-media outreach: Messages
from influencers, WhatsApp groups, or unknown advisors may be traps.
Report immediately: Use the
National Cybercrime Reporting Portal (cybercrime.gov.in) or call helpline 1930.
Time is critical because once funds disperse, recovery chances fall sharply.
Maintain financial discipline: Regular,
informed investing beats chasing quick riches. Avoid making large unverified
investments.
The Human
Cost Behind Numbers
While headlines talk of crores and thousands
of victims, each case has human stories: families with dreams, savings lost,
emotional distress, and financial strain. For chef Kumar, the dream of giving
his daughter education abroad turned into a nightmare of debt. He now says:
“I keep getting calls from owners of those
mule accounts -- I need to repay the gold loan and get the jewellery back.”
What Needs
to Change
Stronger enforcement & faster action: Many
victims face delays in police reporting, website blocking and fund freezing.
Chef Kumar’s case took months.
Tighter verification of high-transaction bank
accounts: Accounts used in scams often have very high limits and operate as mule
networks
More public awareness & literacy: Even
well-educated people fall victim. Campaigns must reach every investor in
understandable language.
Technology to detect deepfakes: With AI
being used in creating fake expert videos, platforms must step up detection.
Final
Thoughts
Investment opportunities can be exciting, but
the faster returns seem, the sharper the risk. The case of chef Sumit Kumar is
a stark reminder: dreams of a better future can turn into deep losses when
fraud enters. The landscape of scams is evolving social media, sophisticated
sites, mule networks, deepfakes. The best defense is informed caution,
verification, disciplined investing and timely action.
If you or someone you know gets contacted with
investment offers, pause. Check credentials. Think again. Time is on the
scammer’s side; your speed in reacting can make a big difference.
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