Scamsters know how to scam, but it is an individual’s responsibility to prevent themselves from falling into such traps. It’s your money, and you must be vigilant and responsible for safeguarding it.
Recently, our team came across a case where Rajan (name changed) received a call from Ride Trading Consultancy (name changed), which claimed to be a SEBI registered entity. They offered a profit-sharing scheme to Rajan.
Initially, Rajan refused, but their persistent pressure led him to buy their service and plan. However, he soon realized that they were not providing accurate calls and managed to save himself from a significant loss. Here is the complete narration of incidents divided into six scenes to help you avoid similar scams.
Scene 1: Rajan’s home, phone rings.
Rajan: (Answers phone) Hello?
Ride Trading Consultancy: Hello! I’m calling from Ride Trading Consultancy. My name is Riya, and our company is SEBI registered. We provide calls on stocks, options, and futures. Can I tell you about our plans?
Rajan: Sure, go ahead.
Ride Trading Consultancy: We have three different plans with varying prices. But let me tell you, first we’ll help you make a profit of 5k to 10k, and once you see the results, you can opt for our 10k premium plan. If you subscribe to this plan, we assure you significant monthly profits.
Rajan: (Skeptical) Before I make any decisions, can you send me your SEBI registration number? I need to verify it first.
Ride Trading Consultancy: Sure, you can check our website. A popup will show our SEBI registered license number as soon as you open it.
Scene 2: Narrator checking the website.
Rajan: (Talking to himself) Let’s see if this is legitimate. (Enters the license number on SEBI’s website) Hmm, it matches. (Tries another method by searching the company name) It shows the same license number.
Scene 3: Phone call continues.
Rajan: I checked your SEBI registration number, and it appears valid. But can you send me a photo of the license?
Ride Trading Consultancy: I’m sorry, we can’t send a photo of the license.
Rajan: (Hangs up the phone)
Scene 4: The next day, phone rings again.
Ride Trading Consultancy: Hi, it’s Riya again. Have you thought about our offer?
Rajan: I’m not interested in your tips.
Ride Trading Consultancy: There’s no risk for you. You’ll only take our plan after making a profit. What’s the harm in trying?
Rajan: (After thinking) Okay, I’ll work with one lot to start.
Ride Trading Consultancy: Our job is just to provide calls. You decide the amount for trading. Even with the real plan, you control how much you trade.
We only need our plan fees, and the profit will be all yours. Also, remember, you won’t make a profit every day; the market can be unpredictable.
Rajan: (Impressed) Alright, I’ll give it a try.
Scene 5: The next morning, the market opens. Phone rings.
Ride Trading Consultancy: It’s Riya. Place the order now!
Rajan: I’m not at my trading desk. I can’t place an order without looking at the charts.
Ride Trading Consultancy: You need to enter now. This is urgent!
Rajan: (Finally gets to his trading desk) It’s already 10:30. Entering now would be too late.
Ride Trading Consultancy: Trust me as a friend. Place the order now.
Rajan: (Looks at the chart) There’s no entry condition met.
Ride Trading Consultancy: Just trust me and enter.
Rajan: (Hesitant) I’ll trade with one lot. I have 10k in my account.
Ride Trading Consultancy: Take 8 lots.
Rajan: No, I’ll stick with one.
Ride Trading Consultancy: Today, the market will have a big movement. Just enter.
Rajan: (Reluctantly places the order) What’s the stop loss?
Ride Trading Consultancy: We are still determining the SL. Just enter now.
Rajan: (Annoyed) Fine. (Places the order at 11:30) I’m already 50% down. (Calls the company)
Customer Care Executive: How can I help you?
Ride Trading Consultancy: Connect me to Riya Varma.
Scene 6: After a while, Riya calls back.
Ride Trading Consultancy: Don’t worry about the loss. Stay in the trade. We aim for a 300% to 400% profit today.
Rajan: (Almost 90% down, feeling desperate) My mind isn’t working. I’ll close my laptop and calm down. (After calming down, finds an SL and exits at 70% loss) The market’s moving opposite to your call.
Ride Trading Consultancy: Stay in the trade. It’s volatile.
Rajan: You had me trade without an SL. How can you talk about SL now? I’ve exited the trade.
Ride Trading Consultancy: (Angry) Why did you exit on your own? If there’s profit, you must pay us.
Rajan: The market’s changed direction. Your premium has dropped to 10rs. What profit are you talking about?
Ride Trading Consultancy: The market can go from 2rs to 200rs. Stay in.
Rajan: Do you expect me to wait for it to drop to 2rs and then rise to 300rs?
Ride Trading Consultancy: (Argument continues, brings in a senior representative)
Rajan: Senior Representative joins the call.
Senior Representative: What’s the issue here?
Rajan: I exited because the market’s against your call. The premium is almost zero. It’s expiry day.
Senior Representative: If there’s profit, will you pay us?
Rajan: (Frustrated) What if it goes to zero? Will you cover my loss?
Senior Representative: Let’s talk after the market closes.
Rajan: (Firmly) Give me your personal number if you want to continue this. (Hangs up)
After market close, no call from the company.
Rajan: (Reflecting) They claimed to be SEBI registered, but their trading tactics show their lack of market knowledge. I lost 7500, which I can recover. But what about those who don’t understand the market and might lose much more?
The above incident is helpful for a beginner who generally fall trap in such scams and end up making huge losses. Here are some of the learnings that you can follow in such cases:
