How the alleged fraud unfolded
According to Madhya Pradesh Police, the fraud began in the last week of December 2025 when the victim was contacted on WhatsApp by a woman posing as an investment adviser.
Investigators said the fraudsters initially encouraged the victim to make small investments and showed returns to build confidence. They then directed him to a fake online investment portal that displayed fictitious gains, giving the impression that his investments were generating substantial profits.
Believing the returns to be genuine, the victim allegedly invested more than ₹21 crore over the next six months through over 100 transactions from four bank accounts.
The fraud came to light when the investor attempted to withdraw his money. Police said the fraudsters allegedly delayed the withdrawal on various pretexts and later demanded several crore rupees more to release the funds.
The victim subsequently approached the cybercrime branch. Police said they have frozen around ₹1.75 crore and are tracing the bank accounts where the funds were transferred. The investigation is ongoing.
Why fake investment scams are difficult to detect
Cybercriminals use messaging platforms, social media and fake trading or investment websites to target investors. Rather than asking for large sums immediately, they often begin with small investments and display fabricated profits on fake dashboards to gain the victim’s trust.
Victims typically realise the fraud only when they try to redeem their investment and are either denied access or asked to pay additional charges, taxes or processing fees before withdrawals can be made.
Red flags investors should watch for
Investors can reduce the risk of falling victim to such scams by staying alert to common warning signs:
- Unsolicited investment offers received through WhatsApp, Telegram or social media.
- Promises of unusually high or guaranteed returns with little or no risk.
- Investment platforms that cannot be independently verified.
- Pressure to invest quickly or increase investment amounts.
- Requests to pay additional fees, taxes or deposits before withdrawals are allowed.
- Investment advisers who refuse to communicate through official company channels or cannot establish their credentials.
How to protect yoursel
Before investing, verify whether the intermediary is registered with the relevant regulator, independently check the website and contact details of the investment platform, and avoid transferring money solely based on links or messages received through chat applications.
If an investment opportunity appears unusually lucrative or promises assured returns, investors should exercise caution and independently verify the claims before transferring funds.
Those who suspect they have been targeted by a cyber fraud should immediately report the incident to the National Cyber Crime Helpline (1930) or file a complaint on the National Cyber Crime Reporting Portal, while also informing their bank to help block or freeze suspicious transactions as quickly as possible.
