 "Thane bizman loses Rs 1.88cr: How to protect yourself from WhatsApp scams?")
A 48-year-old businessman from Maharashtra’s Thane recently lost Rs 1.88 crore after falling prey to a sophisticated stock trading scam. The scam involved the creation of a seemingly legitimate WhatsApp group that provided stock trading tips and advice, initially convincing the businessman of its legitimacy, leading him to invest large sums of money.
The modus operandi of these scams typically involves fraudsters posing as reputed fund managers, financial advisers, or even finfluencers to lure investors. Once the victim’s trust is gained, the scammers persuade him to invest in a specific trading platform, in this case, an app called Zoksa. The businessman, then, invested substantial funds on this platform, only to discover later he was cheated. This is a common tactic used by scammers, where they initially display fake profits in the victim’s digital wallet to further build confidence.
Talking to Business Standard Samarjit G Pattnaik, Partner at Karanjawala & Co., said, “In my view, the most important thing to stop these kinds of cyber frauds is awareness. Any unknown and suspicious call and any form of digital communication should be very carefully responded to and most importantly, without complete verification, no personal data should be shared with any person, app or on any digital form of communication.”
Under which section case will be covered
Offence committed on WhatsApp clearly falls under the ambit of section 66D of the Information Technology Act, which deals with cheating using computer resources. Other sections of the Indian Penal Code would also apply, including corresponding provision of cheating under Section 420 of IPC along with Section 419 of IPC which provides for the punishment for cheating by personation since the basic modus operandi of these offences is to call the victim by impersonating to be a government official or a banker and then tricking to send money or provide the certain information.
The Securities and Exchange Board of India (Sebi), the country’s capital market regulator, has taken a significant step to improve transparency and protect investors from misleading financial advice circulating on social media.
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In a new directive, Sebi is mandating investment advisors to disclose details of their social media presence twice a year. This move comes amidst growing concerns about unregistered influencers and even registered advisors misusing social media platforms to provide unauthorised or misleading investment tips.
How to stay safe from such fraud:
Don’t be greedy: Don’t join any random group if they are offering money or advice.
Protect personal information: Avoid sharing sensitive details like account numbers, passwords, and OTPs with anyone, especially through unsolicited calls or messages.
Be cautious with links and attachments: Avoid clicking on suspicious links or opening unexpected attachments in emails or messages, as they could lead to phishing sites or malware installations.
Set strong passwords: Create strong passwords with a mix of characters and change them regularly to enhance security.
Secure internet connections: Safeguard your home wireless network with a password and exercise caution when using public Wi-Fi networks for sensitive transactions.
Stay informed: Stay updated with common online fraud tactics like phishing scams and be vigilant about any offers that seem too good to be true.