Delhi Police Bust Fake Stock Trading Racket, 4 Arrested in Rs 45 Lakh Fraud

Delhi Police have dismantled an inter-state fraud network that allegedly duped investors by posing as stock market experts and promising high returns. Four accused have been arrested after a man reported losing Rs 45 lakh in the scam.

Police said the gang used advanced digital tactics and psychological manipulation to gain victims’ trust and steal money.

How the Fraudsters Targeted Victims

Investigators revealed that the scammers approached potential victims via WhatsApp and X, posing as professional investment advisors.

Their strategy included:

• Promising guaranteed high returns

• Sharing fake profit screenshots

• Posting fabricated client testimonials

• Adding victims to WhatsApp groups to build credibility

These tactics created a false sense of legitimacy and trust.

Fake Trading App Used to Trap Investors

According to police, the victim was persuaded to install a fraudulent trading app on his phone.

The app displayed fake profits to encourage further investments. When the victim attempted to withdraw money:

• The app stopped functioning

• WhatsApp and social media accounts vanished

• The scammers became unreachable

This is a common tactic used in digital investment frauds.

Money Routed Through Mule Accounts

Police investigations uncovered a complex money trail:

• Rs 45 lakh transferred across eight bank accounts

• Use of mule accounts rented for commission

• Fake SIM cards used to operate accounts

• Digital transactions designed to avoid detection

Technical surveillance helped authorities trace and identify the suspects.

Arrests Made Across Multiple States

The accused were arrested from Delhi, Punjab and Rajasthan, highlighting the inter-state nature of the racket.

Police recovered:

• 4 mobile phones

• 6 SIM cards

• Banking evidence linked to fraud proceeds

A woman linked to one accused has been bound down, meaning she must appear before police when summoned.

Rise in Investment Scams: What to Watch Out For

Authorities warn that online investment scams are increasing across India. Common warning signs include:

• Guaranteed or unusually high returns

• Pressure to invest quickly

• Unknown apps or trading platforms

• Withdrawal restrictions

• Requests to transfer money to multiple accounts

Experts advise verifying platforms and consulting registered financial advisors before investing.