In today’s world, there is no limit to investment options. From FD to mutual funds and share market, one can explore multiple ways to earn passive income or to meet financial goals.
No doubt, these investment products are offered by SEBI or RBI bodies making them safer too.
Even after this, many people get trapped in quick and high-return investment schemes without doing proper checks and lose their hard-earned money.
This is what one of the victims Nitish (name changed) went through and lost ₹5 lakh in the fake investment scam.
However, on not getting returns as promised he quickly took action and reported the case with the help of our team. In one and a half months, he finally recovered his full amount.
But this case taught him an important lesson of not to put hard-earned money in any app without proper analysis. At the same time, this case leaves a lesson for most of the other people who might fall victim to one or the other such apps.
Read the full story and know the ways to keep yourself safe from such schemes.
The Initial Investments
Nitish came across the app named 23Karat through one of the ads on social media. He also found some of the videos on YT where he found influencers promoting it.
Finding it to be genuine, he looked forward to it as an excellent opportunity to grow his savings.
However, what seemed like a golden opportunity soon turned into a nightmare.
The app claims to offer a return of 12% and 13% on investing an amount for 3 months and 6 months respectively. Tempted by the offer, he made an initial investment of ₹1 lakh on February 20, 2024, for three months.
Encouraged by the seamless process and the seemingly professional interface of the app, he decided to invest more over the next few days, bringing his total investment to ₹5 lakh.
During the investment process, the app provided options
- Withdraw the amount upon maturity
- Reinvest the amount.
Wanting to maximize his earnings, Nitesh chose to reinvest his amount for a total of nine months. Feeling confident about his decision, he made another ₹1 lakh investment on March 17, 2024, opting to withdraw it upon maturity i.e. on September 18, 2024.
The Trap Closes In
Luckily, Nitesh received his return and invested capital credit in his bank account on September 18, 2024. He received a payout of ₹1.06 lakh.
This made him trust the platform more.
Trusting the process, he waited for his remaining investment to mature in November 2024. But this time, things took a dark turn.
But this time, the promised payout never arrived. Concerned, Nitesh checked the app for any updates and found no sign of his withdrawal being processed.
He tried to reach out to customer support but found that there was no direct contact number, only an email address.
Desperate for answers, he sent an email but received an automated response citing technical issues.
Trying another email address, he got the same reply. Frustration started to build.
However he didn’t stop there, determined to get his money back, he checked the Google Play Store for contact details of the developers.
He found a listed number but his calls went unanswered.
He then sent an email directly to the developer, who assured him that he would receive a callback. However, days turned into weeks, and no response ever came.
It was clear that he had been scammed.
How We Recovered ₹5 Lakh from a Fake Investment Scam
Realizing he had nowhere else to turn, Nitesh reached out to our team for help.
We immediately investigated the matter and uncovered several alarming facts. The 23Karat app was neither SEBI-registered nor RBI-approved, meaning it was operating illegally.
The advertised returns had no official mention in the app’s terms and conditions, which was a major red flag.
With no time to waste, we guided Nitesh through the process of filing a formal complaint on December 4, 2024, on the respective platforms
We ensured that the complaint was escalated properly and followed up consistently.
After continous follow-ups and our team efforts, on January 21, 2025, Nitesh finally received a refund of ₹5 lakh from the fraudulent platform.
What Went Wrong?
Fortunately, Nitesh received a refund of his amount. But not everyone is lucky enough. Most of the time victims don’t even know how to report online frauds in India.
So it is important to stay alert.
Here are a few things that Nitesh overlooked before investing. Check out to protect yourself.
- Lack of Regulatory Approval: He didn’t check whether the platform was SEBI or RBI registered.
- No Clear Mention of Promised Returns: While the ads promised high returns, the app’s terms and conditions had no such commitment.
- No Proper Customer Support: The absence of a direct helpline should have raised concerns.
- Trusting a Small Initial Payout: Scammers often provide a small payout initially to build confidence before trapping victims with bigger investments.
Lessons for Future Investors
Such cases leave important lessons for other investors looking forward to planning their investments.
- Verify Before You Invest: Always check if the investment platform is SEBI and RBI registered.
- Read the Fine Print: Ensure that the promised returns are mentioned in the official terms and conditions.
- Avoid Greedy Investments: If returns sound too good to be true, they probably are.
- Check for Transparent Customer Support: A legitimate company will always have proper helplines and clear communication channels.
Last but not least stay vigilant, do your research, and never let greed overpower your judgment when it comes to investments.
If you ever fall victim to such frauds, don’t hesitate to seek expert help—there’s always a way to fight back and recover what’s rightfully yours.
If you or someone you know has fallen victim to an investment scam, reach out to us for expert guidance on recovering your money.
