A Pune-based realtor lost ₹2.3 crore after falling for an online investment scam that used a fake advertisement featuring Union Finance Minister Nirmala Sitharaman to make a fraudulent trading platform appear credible.
According to the police complaint, the 58-year-old man came across the advertisement on Facebook on May 25. The use of the Finance Minister’s photograph reportedly gave the investment offer an appearance of legitimacy. Soon after clicking on the advertisement, he was contacted on WhatsApp by a person claiming to represent a stock trading platform.
The caller guided him to a website, helped him create an account and explained how he could invest in the stock market. What followed was a carefully designed confidence-building exercise.
After the victim made his first few investments, the fraudsters allegedly transferred ₹74,000 into his bank account, presenting it as his trading profit. Seeing money actually reach his account convinced him that the platform was genuine.
He then began investing larger amounts.
Over the next few weeks, the caller sent him details of different bank accounts and instructed him to transfer money for various stock market investments. Between July 7 and July 30, the victim made 14 transactions totalling ₹2.3 crore. The money was transferred to accounts in multiple cities, including Delhi, Hyderabad, Chennai, Pune and Vadodara.
Meanwhile, the fraudulent trading platform displayed a seemingly impressive return, showing that his investment had grown to ₹6.5 crore.
The trap became clear only when he attempted to withdraw the money.
Instead of allowing the withdrawal, another person, posing as a financial adviser, allegedly told him that his “equity had fallen” and demanded an additional ₹2.5 crore before the money could be released. The unusually large demand finally raised the victim’s suspicions, and he realised that the profits displayed on the platform were likely fictitious.
The Pune city cyber police are investigating the complaint.
How the scam works
Investment frauds of this kind are often designed to look like legitimate financial opportunities. Fraudsters may use photographs or manipulated videos of well-known public figures, convincing websites, fake customer-service representatives and people posing as financial experts to establish credibility.
The first stage is usually about gaining trust. Victims may be shown small profits or even receive a genuine-looking payment. Once confidence is established, they are encouraged to invest increasingly larger amounts.
The final stage often comes when the victim tries to withdraw the supposed profits. The fraudsters then demand additional payments in the name of taxes, penalties, account upgrades, security deposits or other charges.
A crucial warning: If an investment platform asks you to pay more money to withdraw your own funds, stop immediately. Do not make another payment simply because an online dashboard shows large profits.
Investors should independently verify whether a trading intermediary is registered with the Securities and Exchange Board of India (Sebi). They should also avoid investment links received through social media or messaging platforms and never transfer money to bank accounts provided by unknown individuals.
The promise of unusually high returns, pressure to invest quickly and demands for additional money before withdrawal are among the strongest warning signs of an investment scam.
