Dabba trading is illegal but still most of the people get into this without gaining proper understanding of how dabba trading works? Eventually, they lost their capital not in trading but in the fraud that these dabba traders do.
Our team came across one such case where Naveen’s brother, Arjun (name changed) who is living in Africa paid ₹50,000 to dabba trader. Now this trade is complete offline or dabba traders use their own software and platforms to execute the trade.
In simple terms, clients have zero idea of where they fund is being invested. This makes it easier for dabba traders to misguide them and loot their capital.
Along with this they created a greed of huge profit by claiming to offer high leverage of up to 500x. This means if someone invest let’s say ₹1 then dabba trade executes the trade equals to ₹500. Thus showing them dream of high profit.
But in this case, dabba trader not only looted his amount but also threatened Naveen & his family.
So, when Arjun paid ₹50,000 to Dabba trader, initially he showed him some profit and when Arjun asked him to pay his profits they instead told him that in one trade that they took on his behalf they lost ₹30 lakh and now he had to pay the lost amount.
However, this is something that is not possible because no actual trading takes place in Dabba Trading.
Arjun then contacted Naveen who used to trade in stock market and told him about the whole incident. Naveen called dabba traders but in turn they started threatening him. Eventually, Naveen report a complaint in Cyber Crime and in local police station.
On investigating the case, Cyber Crime blocked Dabba Trader’s bank account. At the end when dabba trader failed to make transactions using his account he contacted Naveen and agreed to pay him ₹20,000.
Naveen received the amount but didn’t take the complaint back until the Dabba trader paid rest of ₹30,000.
Now, in this case, Naveen took an immediate action and therefore succeed in getting some part of his lost amount back. But the point here is not about the recovery but the mental disturbance that the Arjun & Naveen went through on losing amount first and then getting threatening calls from the scammer.
This all happened because of the greed of earning high returns in short time because of which Naveen didn’t consider to do a proper research and gain knowledge.
Sometimes, the lost amount could be high and therefore it is recommended to stop using such services. Because until Dabba traders get client, they would not stop and use their tactics to loot people’s capital.
