Why are Chennai Police Warning About Online Investment Scams?

Chennai, Aug 31 (NationPress) The Greater Chennai Police have sounded an alarm for the public due to an increase in online investment scams that are preying on unsuspecting residents of the city.

As stated by Police Commissioner A. Arun's office, cybercriminals are exploiting the names of reputable financial institutions to draw individuals into fraudulent schemes, leaving many victims defrauded.

The Central Crime Branch’s Cyber Crime Wing has reported a rise in complaints against a scam operating under the guise of a well-known finance company.

Investigations by the police uncovered that this group is promoting misleading advertisements on social media, luring potential victims with promises of abnormally high returns on investments. Once individuals express interest, they are added to WhatsApp groups managed by the fraudsters. Within these groups, victims are encouraged to download counterfeit investment apps and transfer funds. To build trust, the scammers initially allow small withdrawals under the guise of profit sharing. However, when larger amounts are invested, victims are told that additional deposits are necessary to access their full balance, effectively trapping them into sending more money.

The police clarified that the bank accounts used for these transactions are completely unrelated to the legitimate financial institution being impersonated.

Importantly, the fraudsters provide no receipts, agreements, or documents as required by the Securities and Exchange Board of India (SEBI).

Authorities emphasized that no SEBI-registered firm or legitimate private enterprise communicates through WhatsApp groups or unauthorized applications for investment.

Police Commissioner Arun urged the public to resist falling for promises of extraordinary profits.

“Individuals should exercise vigilance and refrain from transferring money to accounts provided by unknown persons claiming to represent financial institutions,” the statement cautioned.

Citizens were reminded that reputable companies offer proper documentation in accordance with SEBI regulations and do not engage in business through informal chat groups.

The Chennai Police also called on the public to report any suspicious investment advertisements or communications to the Cyber Crime Wing promptly.

Officials stressed that raising awareness is vital to combating this issue, as online investment scams are becoming increasingly sophisticated in their tactics.

With the growing prevalence of digital transactions, authorities reiterated the necessity of verifying all financial opportunities through authorized channels before investing funds.