With the ease of reaching out to people through different modes, the number of scams and frauds has increased significantly. Scammers reach out through WhatsApp and Telegram, followed by ads on social media platforms like Instagram or Facebook.
These advertisements lure beginner and young investors with promises of high returns on minimal investments, often resulting in a harsh life lesson for these investors.
Asif Ahmed, a student pursuing graduation, came across one such advertisement and lost capital worth ₹50,000/-. He shared his story with our team, and we suggested the process for claiming a refund of his losses.
Asif Ahmed: Hello sir, I am Asif Ahmed, pursuing my graduation. I belong to a small town and recently lost ₹50,000 in an investment scam.
ADB: That’s really unfortunate. Please share the details.
Asif Ahmed: Sir, it was a usual day. I was scrolling through Instagram and saw an ad offering an investment opportunity.
ADB: What exactly was the investment product?
Asif Ahmed: It was related to Block Trade, where they claimed to provide a 100% return on investment.
ADB: Block Trade? Was it a registered broker?
Asif Ahmed: I guess it was not.
ADB: Did they share any app link?
Asif Ahmed: No, they just asked me to transfer money into their account and promised regular returns.
ADB: So there was no platform; you just transferred your money to a stranger?
Asif Ahmed: I had no idea it was a scam, as the scammer shared many messages and screenshots of returns. They told me they had been doing block trading for years, based on their clients, and provided more than 100% returns.
ADB: How much did you invest?
Asif Ahmed: I began with ₹5,000 and transferred ₹52,000 in total.
ADB: Didn’t you ask them for returns?
Asif Ahmed: He used to share profit screenshots with me daily. I thought my money was growing, but the truth was it was their strategy to get more money from me.
ADB: When exactly did you realize you had been scammed?
Asif Ahmed: Two days ago, when I asked them to share some profit with me because I needed to deposit my college fees, they asked me to pay ₹30,000 in taxes on my profit.
I said I had no money left and needed my profit and the capital invested. They denied it and then blocked my number.
ADB: Do you have bank transaction details and the name and number of the person?
Asif Ahmed: Yes, I do. I made a few transactions using my bank account and a few from my friend’s account.
ADB: Okay, Asif, since the investment platform was not registered with SEBI, you can file a complaint with Cyber Crime. You need to draft and document all the proofs you have.
Asif Ahmed: Okay sir, but I have no idea how to file a complaint.
ADB: We have a team that can guide you on how to file a complaint with Cyber Crime. You can contact us anytime for assistance.
Asif Ahmed: But does cyber crime refund money?
ADB: Yes in some cases people get their lost amount but it all depends upon how quickly you file a complain. Also, the proofs you have must be enough to validate your points.
Asif Ahmed: Okay, will share you all the details then.
In this case, the whole scam started with the name of investment in Block Trade. Asif’s limited knowledge led to the loss of his capital.
So, what exactly is Block Trading?
Block trading is the exchange of a fixed number of shares and securities between a listed company and institutional investors or fund managers.
In short, retail traders cannot do block trades directly; however, they can invest their funds in different investment products like mutual funds, where fund managers take care of their investments and provide returns proportional to their investment value.
These mutual fund investments are also conducted through registered platforms only. Asif had no idea about this format and process, which led to him losing ₹50,000.
Before making any investment, it is crucial to understand the schemes and plans thoroughly. It is also essential to validate the background of the person or company offering such services.
A small investment of time in research can prevent you from investing in fake or unregistered platforms.
