Doctor loses ₹76.5 lakh in online trading scam

Doctor loses ₹76.5 lakh in online trading scam

He was enticed by promises of high returns on investments.

S. Vijay Kumar

CHENNAI 09.11.2024 

In yet another case of online fraud, a government doctor fell victim to scammers, losing ₹76.5 lakh after being enticed by promises of high returns on investments.

The victim, an Associate Professor at a Government Medical College, had transferred the money to what appeared to be an online trading platform for purchasing stocks from well-known companies. He realised that he had been deceived only when he attempted to withdraw funds.

According to police sources, Dr. Ramesh (name changed onrequest) came across an advertisement, offering training and guidance in online trading, on YouTube. It led him to join a WhatsApp community group, where several members presented themselves as investors.

Online trading classes

In the first few days, the group focused on online trading basics, with members frequently posting screenshots of their investments and profits. The group’s administrator, known as Diwakar Singh, recommended stocks for both intra-day and long-term investments.

Once the suspects sensed that Dr. Ramesh had gained confidence in the community, they instructed him to open an account on a specific website, promising a 30% profit from investments in Indian and U.S. stocks.

Following a link provided by the suspects, Dr. Ramesh registered an account and began transferring money from his bank accounts to the website. The scammers claimed his funds would be invested in high-return stocks, even providing a list of companies and IPOs for credibility. Nearly all of the funds were transferred during the first three weeks of October this year.

On October 22, when Dr. Ramesh attempted to withdraw ₹50 lakh from his account, the transaction was declined. Upon inquiry, he was told that a ₹50-lakh fee was required by the “Qualified Institutional Buyers Association” to process withdrawals. “That’s when I sensed something was wrong. I realised that I could not access my funds, and that I had been systematically lured into an online trading scam,” Dr. Ramesh toldThe Hindu.

After he reported the incident, a case was registered under the Information Technology Act and Bharatiya Nyaya Sanhita. Tamil Nadu police are now working to locate suspects in North India, where the funds were reportedly transferred and withdrawn. A senior police officer handling cybercrimes in the State said Dr. Ramesh’s case was yet another example of unsuspecting individuals losing money to scammers.

“Once the money is transferred, it is siphoned off in less than two hours. In a recent case, ₹1.18 crore transferred to one such fraud account was withdrawn in about 250 transactions across India. The accused were operating from Southeast Asian countries,” the officer said.