Hyderabad:Many people are falling victim to a well-organised scam involving fraudsters impersonating a leading financial services company, something the police have named pig butchering scam. In this case, the scammers, pretending to be the firm’s chairman, are luring unsuspecting investors into WhatsApp groups, promising tips on stock investments and initial public offerings (IPOs) in return for money.
Several victims have lost lakhs of rupees, realising too late that they have been deceived.
The scam usually starts in two ways. In some cases, victims come across advertisements claiming to represent the firm and register through these fake promotions. In others, victims are added directly to WhatsApp groups and channels run by the scammers.
One of the WhatsApp group’s administrators impersonates the company MD, regularly posting investment tips. A user named Aanya Smith, posing as a financial expert, plays a key role in persuading members to invest. To build trust, the group shares screenshots showing massive profits.
The scammers further trick their targets by asking them to download an app, which was available on the Google Play Store and Apple App Store but has now been removed. This app showed real-time stock updates and market data, making it appear like an authentic platform of the financial services firm.
After downloading the app, victims are asked to register and start investing. Initially, many victims can withdraw small amounts, which strengthens their confidence. Believing the platform to be genuine, they start depositing large sums, often in the range of several lakhs. The scammers direct the payments to multiple bank accounts across the country, registered under various business names.
Once significant amounts are invested, the problems begin. When victims try to withdraw their full investments, the scammers demand additional "commission fees," often running into lakhs. Trusting these demands, many victims pay the fees, only to find out later that they still cannot access their funds. The scammers continue to give excuses, blaming issues like low credit scores or fraudulent banking transactions and demand more money.
At this point, the victims realise they have been scammed.
This scam involves several layers of criminal activity, including impersonation, app and website spoofing, trading scams, and bank fraud. The use of WhatsApp groups adds to the complexity, making it harder for authorities to track the scammers.
So far, many victims from Telangana, Andhra Pradesh and across the country have reported these incidents, but the number of cases continues to rise.
One of the victims told Deccan Chronicle: “We came across an advertisement of the company and when we showed some interest, we were added to a WhatsApp group. We withdrew `5,000 initially to check the company’s authenticity, and everything seemed normal until we stopped getting returns. We had reported it to the Karnataka police, but did not receive any great response in terms of the investigation..”
Speaking to Deccan Chronicle, TG Cyber Security Bureau (TGCSB) Director, Shikha Goel said, “This scam is very common, it’s called the pig butchering scam or stock investment fraud and many victims of such cases have come forward. What the public should remember is that investment in stocks is through demat accounts and not through private or company accounts. Also stock investment is not through websites of companies but through stock exchanges.”
