Pune, February 20: Online share trading scams are on the rise, with fraudsters using deceptive tactics to lure investors into fake schemes. In a recent case, a 40-year-old software engineer from Manjari lost INR 33.75 lakh after being tricked by scammers posing as share brokers. As per the Time of India report, the victim was added to a messaging group where fraudsters promised high returns through an online trading app. Initially, he made small profits, but as he invested more, he was asked to transfer funds to multiple bank accounts. When he tried to sell his shares, he realised he had been duped as withdrawals were blocked. What Is ‘Fake Number’ or ‘Fake Website’ Scam on Google? How Can You Protect Yourself From Scammers?

Such scams,  known as Online share trading scams, typically involve fraudsters impersonating financial experts, promising guaranteed profits, and directing victims to fake trading platforms. They use high-pressure tactics, urging quick investments while restricting withdrawals once significant amounts are deposited. Victims often trust these schemes due to professional-looking websites, fake regulatory approvals, and misleading investment advice. By the time they realize the fraud, their money is gone, and the scammers disappear. Here are ways to stay safe and protect yourself from such scams. What is a Work-From-Home Scam? Know How to Spot and Avoid This Remote Job Fraud?

How to Stay Safe from Online Share Trading Scams?

  1. Verify the Trading Platform: Use only trusted, registered stockbrokers and ensure the platform is regulated by financial authorities.

  2. Avoid Unsolicited Offers: Never respond to unsolicited messages or calls offering investment opportunities. Be cautious of unsolicited emails, phone calls, or messages from unfamiliar sources.

  3. Research Before Investing: Conduct thorough research on any trading platform or investment opportunity. Check reviews, credentials, and regulatory compliance.

  4. Check for Red Flags: Be wary of platforms that offer unusually high returns with little or no risk. Scams often promise guaranteed profits or exclusive deals.

  5. Secure Your Personal Information: Never share sensitive information, such as bank account details, passwords, or personal identifiers, with anyone you don't trust.

  6. Verify Broker Credentials: Always verify the identity of anyone claiming to be a broker or investment advisor. Cross-check their credentials through official channels.

  7. Avoid High-Pressure Tactics: Scammers often create a sense of urgency, pressuring you to invest quickly. Take your time to evaluate and consult trusted financial advisors.

  8. Monitor Your Investments: Regularly check your investments and ensure that you can easily access and withdraw funds from your trading account.

  9. Use Secure Payment Methods: Avoid transferring funds to unknown or unverified bank accounts. Use secure, traceable payment methods.

  10. Report Suspicious Activity: If you suspect fraud, report it immediately to cybercrime authorities or your local police to prevent further harm.

Authorities warn investors to remain cautious as online trading scams are becoming increasingly sophisticated. In the recent Manjari case, the victim unknowingly transferred INR 33.75 lakh to multiple accounts, only realizing the fraud when he couldn't withdraw funds. Pimpri-Chinchwad police emphasize the importance of verifying trading platforms, avoiding unsolicited investment offers, and staying alert to red flags. The public is urged to report suspicious activities to cybercrime authorities immediately.

(The above story first appeared on LatestLY on Feb 20, 2025 06:43 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).