It is the greed of the investor that made them fall victim to one or the other scam.
If traders and investors accept the reality of stock market trading, it would become difficult for scammers to trap them in one or another fabricated scheme or profit.
But unfortunately, even after so many cases, alerts, and awareness, people are getting trapped in the so-called guaranteed profit scheme.
Recently, one of the victims Hitesh (name changed) registered a case with us who lost ₹95,000 in a fake algo trading software scam.
However, with the right guidance and legal action, we helped him recover the entire amount within a week.
Scroll down to learn he was trapped and how our team helped him in recovery.
The Perfect Setup of Non-Certified Algo Software Company
Hitesh, a beginner in trading, received a call from a company named Autotrades, claiming to offer an AI-powered algo trading software with inbuilt strategies that promised consistent profits.
The sales pitch was tempting—
- No manual intervention required
- Guaranteed profitable trades
- Just fund the account and let the software do the magic
Seeing it as an easy way to make money, Hitesh invested ₹73,000 to buy the software.
What Happened Next?
Once he paid for the software, the company linked it to his Angel One demat account. They instructed him to keep funds ready, assuring that the software would automatically place trades based on inbuilt strategies and generate profits.
Excited by the idea, Hitesh started with ₹5,000 and surprisingly made a small profit.
Encouraged by the results, he increased his capital, only to suffer a massive loss of ₹22,000 in a single day leading to the total loss of ₹95,000 (₹73,000 software fees+₹22,000 trading loss)
Panicked, he reached out to the company, but they ignored his calls and messages.
How Our Team Helped Hitesh?
Soon, Hitesh realized that he had been scammed. He then contacted our team, hoping for a solution. We immediately took action:
- Investigation: We found that Autotrades was not registered with SEBI or any exchange, making their software illegal for trading.
- Filing Complaints: We helped Hitesh report the case on multiple platforms.
- Legal Pressure: With multiple complaints and the risk of exposure, the company’s director was forced to respond.
- Negotiation: After firm discussions, the director finally agreed to return the full amount of ₹73,000 to Hitesh within a week.
Lessons for Investors
This case is yet another example of how unregulated platforms exploit traders.
If you’re considering algo trading, keep these safety measures in mind:
- Verify SEBI Registration: Always check if the company is registered before investing.
- No Software Can Guarantee Profits: The market is unpredictable, and guaranteed returns are a red flag.
- Avoid Giving Demat Access: No third-party software should have control over your trading account.
- Report Suspicious Activities: If you suspect fraud, learn the way of how to report online frauds in India and take quick action against scammers.
Conclusion
Scammers thrive on traders’ greed and lack of awareness.
Hitesh was lucky to recover his money, but many aren’t.
Always do your research before investing, and if you ever fall into a trap, take quick legal action—just like Hitesh did with our help.
