Everyone wants to earn quick profit and want to gain high returns. But the stock market demands patience which unfortunately most of the beginner traders don’t have.
This makes them invest their capital in illegal trading practices like Dabba Trading.
Without having an understanding of how dabba trading works they get into the high-risk practices.
Although the high profits are tempting, the losses in Dabba trading could be much higher and sometimes remain unreported. Here is one such case of how a man lost ₹48,00,000 in a dabba trading scam.
So, how all this happened!
To scam people Dabba traders use the same tactics as most of the scammers out there and claim high returns. In this case, one of the dabba traders approached Vivek (name changed) and provided an assurance of high returns of 100%-200%.
Driven by the temptation of high return, Vivek invested a sum of ₹14,00,000. And soon dabba trader reported a profit of 100% where he claimed that the capital had increased to ₹28,00,000.
Since there is no app or platform to check the return, Vivek believed him and added another ₹34,00,000 in the dabba trader’s bank account.
Dabba trader’s objective was met and this time he claimed that the investment had faced a massive loss of ₹95,00,000.
When Vivek asked for his capital, Dabba trader turned the table and asked Vivek to cover up the loss amount by paying ₹50,00,000. He didn’t stop there and started threatening Vivek.
Now, this is not one case, and many Dabba traders use this tactic. Most of the time, to protect themselves from any further consequences, victims compromise with the Dabba traders and don’t ask for their invested amount.
Since dabba trading is not regulated, traders fled away with crores of their clients’ capital.
However, Vivek didn’t stop and reached out to our team who then helped him in filing a complaint.
How to Report Dabba Trading?
Dabba trading is illegal and unregulated. This means one cannot report such cases to SEBI or stock exchanges.
However, one can file a complaint at a local level by filing an FIR and submitting the required proofs. Along with this, the victim can send mails to higher local authorities to report dabba trading.
The other way is to file a Cyber Crime complaint by documenting & drafting all the details. Cyber Crime police investigate the case and block bank accounts of dabba traders that increases the chances of settlement and recovery of lost amounts.
Now there are ways by which you might get your lost amount back but to protect yourself from getting into such trouble it is better not to get into any such investment practices.
