Stock market fraud cases surge in Bengaluru, victims lose Rs 200 Crore in 4 months

Stock market fraud cases surge in Bengaluru, victims lose Rs 200 Crore in 4 months

Stock market fraud cases surge in Bengaluru, victims lose Rs 200 Crore in 4 months

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Cases of fraudulent investment schemes have surged in Bengaluru over the past four months, resulting in a loss of Rs 197 crore, according to a new report. 

The cyber crime police in India’s tech hub have registered 735 cases, with no recoveries reported so far. However, bank accounts have been frozen in 10 percent of the cases, as reported by the news agency.

The rise in stock market fraud cases has prompted the cyber police to form a special team to investigate these incidents. An average of eight cases per day were registered in February alone, with losses amounting to Rs 88 crore across 237 cases. 

Additional Joint Commissioner of Police (Crime), Chandragupta, noted that most victims are around 30 years old and familiar with the market system. He attributed the losses to ‘greed,’ which drives individuals to fall for these fraudulent schemes.

In March, the National Stock Exchange (NSE) issued a warning to investors about entities fraudulently claiming association with reputed financial institutions and presenting fake certificates. These certificates were purportedly issued by the Securities and Exchange Board of India (Sebi) and the exchanges, as stated in a press release dated March 11.

Similarly, in February, Sebi cautioned investors against individuals posing as employees or affiliates of Sebi-registered foreign portfolio investors (FPIs) and offering trading opportunities. Sebi clarified that the FPI investment route is not available to resident Indians, with limited exceptions. 

The increase in these fraud cases underscores the need for heightened vigilance among investors and stricter enforcement measures by authorities to combat financial scams.