Don’t get carried away by the looks of investment apps | Don’t get carried away by the looks of investment apps! Achi-News

More money always seems attractive to everyone, but the temptation to make money quickly can prove to be expensive. Sachin (name changed) experienced this first hand. He saw an ad for a broker app on social media. The ad promised high returns on a large investment. Intrigued, he clicked on it, and soon his inbox was flooded with messages. Without much thought, Sachin invested a lump sum of Rs 3 lakh. Two weeks later, he found out it was a scam. The scam app gained his trust because it mimics a reputable investment app. Sachin is not alone in falling victim to such scams; Such crimes are on the rise. This is known as a hog slaughter scam, a type of investment scam where cybercriminals create fake investment apps and websites to lure people into investing money with the lure of earning returns.

With increasing cases of such scams, stock exchanges have issued warnings to investors. The National Stock Exchange (NSE) has warned investors that some individuals or entities falsely claim to be associated with reputed financial institutions. They give Indian and international mobile numbers, WhatsApp groups, Telegram channels, Facebook and Instagram channels. They often show fake certificates of SEBI/stock exchanges.

Apps like Fisdom, Dhan, Fyers and Choice Broking have also alerted people that their names are being misused to lure people into investing.

Now, understand how a pig slaughter scam works

Cyber ​​crooks initiate their schemes with ads on social media platforms. Then, they send messages to people. With this aim, you join a WhatsApp or Telegram group. For this purpose, the name of a real company is used. In these groups, shares are offered daily. You also get trading tips. Many times, you may profit from a stock. It gains the trust of the people. After that, the real scam begins. You will be asked to download an application and instead of investing directly in stocks, you will be asked to transfer money to a bank account. In the fake application, this amount will appear as your balance amount. The fraudsters claim that they do not trade in the regular market but in the primary market, and it is impossible to invest directly. Therefore, the money must be transferred to another bank account. But this money goes into the pockets of the fraudsters; There is no investment in your name. That’s why it’s called a pig slaughter scam. During this period, investors are guaranteed a return of 30 to 40 percent per week.

After learning about the modus operandi of these scammers, it is also important to know how to protect oneself from such scams.

First, if someone contacts you through a social media platform, be careful. If you see an ad for an app on social media, be sure to check its reviews on the Play Store or App Store. Check the list of registered brokers on SEBI website. Do not make any financial decisions under emotional pressure or temptation of high returns. Thorough research before making any investment.

Published: April 6, 2024, 12:30 PM IST