First, there was the dark web. And now there seem to be even darker internet spaces where the fraudsters are harnessing the power of social media platforms and artificial intelligence (AI) to wreak havoc. There is an alarming rise of investment scams in India, as fraudsters are using WhatsApp, Facebook, Telegram, and X, and creating fake investment groups, impersonating investment advisors, to lure gullible people into investing in crypto, and stocks by promising assured returns, according to a recent research report by CloudSEK, a threat intelligence platform.
“The landscape of investment scams in India has evolved significantly with the rise of social media messaging platforms like WhatsApp and Telegram. Fraudsters are leveraging the identities of reputed financial professionals, fund managers, and influencers to deceive unsuspecting investors into joining fake investment groups promising quick returns,” says the report.
Statistics So Far: According to the report, the most targeted countries for fraudsters are India, Malaysia, the USA, Thailand, and Vietnam. They have paid around US dollar 100 for 10,000 lines of data containing phone numbers and names. They have deposited Rs 5 lakh worth of cryptocurrency in an underground forum for building trust with threat actors. The fraudsters are offering 10,000 USDT (stablecoin) to 30,000 USDT for a single site’s data. They have created over 81,000 X accounts impersonating financial institutions. They typically earn over Rs 41 lakh every month from the scam operations. According to the report, an organized crime group earned around Rs 300 crore, as claimed by a scammer.
According to the report, there are over one lakh reported investment scam cases in 2023 alone in India. The losses in the first four months in India amounted to Rs 1.2 billion in 4599 cases of digital fraud. There are around 20,043 trading scam cases in the first four months of 2024. In the first four months of 2024, there are around 20,043 trading scam cases. In the first four months of 2024, there are 62,687 cases of investment scam complaints. In the first four months of 2024, there are 62,687 cases of investment scam complaints.
What Is The Modus Operandi: Organized criminals purchase data from data brokers, who scour underground forums for newly hacked stock trading data and pentesters. These brokers contact hackers, paying them to breach specific stock trading sites and obtain their databases.
This data is then sold by brokers to organized crime groups managing large-scale trading scams across several countries. Such crime groups two kinds of employees, handlers and actors. Such handlers, who are part of WhatsApp group admins, execute the scam, keeping full control and reporting back to the criminals. While less skilled employees impersonate successful investors, misled victims fall for such fake stories.
Using compromised data to send direct messages, scammers reach out to potential victims through various social media platforms. Such actors leverage social media platforms to lure gullible people into joining investment groups. The scammers then provide fake proof of earnings to lure the victims further. They promise high returns and show fake profits to encourage investments, finally scamming victims and removing them from the WhatsApp group.
Kinds Of Trading Scams: There are two kinds of trading scams: crypto and stock scams.
Crypto Scams: In this case, threat actors convince victims to invest money into fake investment websites.
Stock Trading Scams: Assuring high returns, victims are encouraged to invest in stocks.
How Do They Get Your Data: “There has been a surge in the sale of Indian stock trader data on underground forums. Numerous threat actors are actively buying and selling this data. In recent months, these actors have increasingly targeted Indian stock exchange websites. Investigations have revealed that some Chinese nationals are paying substantial amounts of money to acquire this information,” according to the report.
How To Stay Safe: Here are ways to identify these scams are protect yourself:
Here is how you can identify such scams and protect yourself:
You must treat with suspicion any links or emails with incorrect spellings, wrong grammar, and a sense of desperation in text.
If you come across any suspicious-looking ads, posts, or videos, don’t click on them.
Watch out for unnatural signs, mismatched lip-syncing, or inconsistencies in light and shadows in videos.
Be very aware of and verify the legitimacy of investment offers
Avoid responding to unsolicited messages. Do proper due diligence before committing to any investment.
Most of all, you can always register a complaint with 1930, which is the national cybercrime helpline, if you feel you have been scammed. You can also file a complaint on the National Cybercrime Reporting Portal or file an FIR at the nearest police station.
