A recent incident involving a counterfeit crypto trading application has reignited concerns about the risks investors face in India as they navigate increasingly sophisticated digital scams. A retired engineer reported significant financial losses linked to a WhatsApp investment group and a fraudulent mobile trading platform.
The Rise of Social Media Scams
According to reports, the scam began on November 4, when a 65-year-old retired engineer from Miyapur was added to a WhatsApp group named the 531 DBS Stock Profit Growth Wealth Group. The group was led by individuals posing as Professor Rajat Verma and an analyst named Meena Bhatt.
They marketed the space as an exclusive community offering access to premium investment ideas and restricted trades. The operators encouraged the engineer to install a mobile application called DBS, hosted under the domain ggtkss.cc.
They portrayed the platform as a gateway for exclusive transactions and arranged for small initial public offerings typically not accessible to individual traders. The engineer deposited ₹100,000 on the day he joined. Shortly after, a withdrawal of ₹5,000 was approved, fostering a sense of legitimacy that motivated him to invest further.
Escalating Transfers Over Time
Between November 4 and December 5, the engineer transferred more than ₹12.8 million across various bank accounts and Unified Payments Interface channels, believing he was investing in offerings such as Capital Small Finance Bank’s IPO and stock buyback programs.
The application showed an increasing balance, reinforcing the false impression that the transactions were successful. However, the situation took a downward turn when he attempted to withdraw his accumulated funds. The operators demanded a payment of 20% before releasing his balance.
After he refused to pay the fees, his account was permanently blocked. Overall, the engineer lost approximately $130,000 (around ₹1.28 crore). He subsequently filed a complaint with the Cyber Crime Police of Cyberabad on Friday.
Law Enforcement Response and Broader Warnings
The authorities have registered a case under various sections of the Bharatiya Nyaya Sanhita and the Information Technology Act. Police indicate that the operation reflects a broader pattern seen in digital investment crimes, where cloned applications and controlled discussion groups contribute to an investment journey that seems credible.
Cybercrime teams are using this incident to stress the importance of stricter verification practices among retail investors. Officials pointed out that false claims, access to alleged premium trades, and promises of returns remain common tactics used in similar schemes.
They urge potential investors to independently verify the authenticity of platforms, confirm regulatory approval, and report any suspicious applications, links, or WhatsApp groups to cybercrime portals.
A Growing Challenge for Digital Markets
This case reflects a broader shift in how fraudsters operate, increasingly blending social media channels with cloned trading apps and targeted persuasion strategies. As authorities continue to intervene, the rising reliance on digital investment tools necessitates a more thorough examination of platforms before transferring funds.
The use of realistic branding, structured trading claims, and gradual withdrawals complicates detection for novice investors.
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