Fake Stock Market: 20,000 Investors Lose ₹1,420 Crore in Four Months Due to Fake Trading Apps

With the growing interest of young people in the stock market, fake trading apps have become increasingly rampant across the country. Investors, ensnared by these fraudulent platforms, are losing crores of rupees. 

Recent data from the Indian Cybercrime Coordination Centre (I4C) under the Ministry of Home Affairs, which monitors cyber crimes, reveals that in the first four months of this year, 20,043 investors fell victim to these fake apps, collectively losing ₹1,420 crore.

Alarmingly, this money has crossed Indian borders, ending up in the hands of international cyber fraudsters. Rajesh Kumar, the head of I4C, explained that a sophisticated network of fraudsters is deployed on social media platforms to lure individuals towards these fake stock markets. These fraudsters present themselves as well-known professionals but mislead investors and direct them to these deceptive links.

Rise in Cybercrime Due to E-KYC and Fake KYC Processes

Cyber criminals are exploiting the e-KYC (Electronic Know Your Customer) process, leading to a surge in cyber crimes. As part of a nationwide crackdown on these criminals, central agencies have seized over 28,000 SIM cards. 

Additionally, more than 2 million mobile numbers are under scrutiny, and 1,000 Skype profiles have been banned. According to the Indian Crime Coordination Centre (I4C) under the Ministry of Home Affairs, analysis of over 28,000 banned mobile handsets and their associated SIM cards has revealed that cyber criminals are using a process known as F-KYC (Fake Know Your Customer), similar to e-KYC. This fraudulent process typically starts with the creation of fake IDs.

Ministry Blocks 3,400 Internet Infrastructures to Combat Cybercrime

In the past four months, the Ministry of Home Affairs has blocked 3,400 internet infrastructures on social media platforms. These blocks include advertisements from fake experts and fraudulent trading apps. 

Cybercriminals also use mule accounts, which they rent out for financial transactions. The account holders, often unaware, receive a fee while crores of rupees are moved through their accounts. This measure is part of a broader effort to clamp down on cyber fraud and protect unsuspecting investors from falling prey to these scams.