Beware of investment scams: Assam Police issues advisory
Staff Reporter
Guwahati: In the wake of rising investment-related scams across the country, the Assam Police has issued an advisory for investors after reports of people in Assam being duped by such scammers came to light. The advisory contains a warning about fraudulent investment schemes and apps promising unrealistic returns, and the Assam Police is asking investors to practice caution while trading.
Assam Police issued the advisory, listing the means by which scammers lure potential investors. The advisory says that scammers contact people on Whatsapp and Telegram claiming to represent a company. They ask potential investors, lured by big returns on their investments, to open an account and make initial deposits. They then show fake profits and even allow small withdrawals to win the trust of the investor. Once lured in, they ask people to invest huge sums. They even ask for additional deposits on the grounds of technical issues or as security deposits. The victims realize their folly only when they try to withdraw funds. They are then confirmed to have been victims of a scam.
Several cases in Assam have come to light, including one where the victim was able to save some of his money when a team from Cyber PS acted promptly to prevent one tranche of money of Rs 28,52,000 after a victim from Rehabari fell prey to cyber fraud, losing Rs 1.3 crores by investing online in the stock market through a fake online platform. Sensing foul play, the victim approached the Cyber PS. Due to swift action by the Cyber PS team, an amount of Rs 22,50,000 was credited back to the victim’s account later. A further probe into the case is on, sources said.
Asking people to be vigilant, the Assam Poice says one should always verify all sources directly with the named company, avoid sharing personal information or making deposits, and report any suspicious activity to www.cybercrime.gov.in.
Earlier, the Securities and Exchange Board of India (SEBI) issued an advisory warning investors about fraudulent entities and people who scam people through digital means and social media platforms. SEBI has warned investors about unsolicited offers, fraudulent trading schemes, or apps that promise unrealistic returns through block deals and IPO allotments; fraudulent trading platforms, especially those that claim to be affiliated with semi-registered foreign portfolio investors; and unregistered investment advisers, as SEBI registers investment advisers under the SEBI (Investment Advisers) Regulations, 2013.
SEBI also has some tips for investors, including: regularly checking your trading account; regularly checking daily and monthly SMS and emails from the exchange regarding trades and funds and securities balances; not borrowing money for investment; not dealing with unregistered brokers or other intermediaries; not paying more than the agreed brokerage or charges to the intermediary; not executing any document with an intermediary without fully understanding its terms and conditions; and not signing any blank forms or Delivery Instruction Slips.
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