How fraudsters are using WhatsApp, Facebook, X and Telegram for investment scams in India

Various reports in the past have suggested how fraudsters are targeting Indians with investment scams. They defraud people by offering high returns, convincing them to invest huge amounts of money and the victims later realise that they have been scammed. According to a report, social media platforms like WhatsApp, Facebook, X (earlier Twitter) and Telegram have seen a rise in investment scams over the last few months.
“The landscape of investment scams in India has evolved significantly with the rise of social media messaging platforms like WhatsApp and Telegram. Fraudsters are leveraging the identities of reputed financial professionals, fund managers, and influencers to deceive unsuspecting investors into joining fake investment groups promising quick returns,” cybersecurity company CloudSEK has revealed
CloudSEK says that its threat intelligence report outlines the modus operandi and tactics associated with these fraudulent activities targeting Global countries, especially India.

CloudSEK claims that it has discovered over 29,000 malicious investment advertisements on Facebook and 81,000 fake investment WhatsApp groups during the period of January to June, 2024.
The report said that a scammer who has been in the business for over six years has been earning around $ 50,000 (around 41 lakh) per month. The personal data is available for purchase at $100 for 10,000 lines of data containing details such as phone numbers and names.

The fraudsters are using sophisticated tactics, including impersonating reputed financial institutions and professionals, to lure unsuspecting investors into fake investment groups. They promise quick and substantial returns.
“Within these groups, scammers manipulate victims by providing fake proof of earnings and promising high returns. They then disappear with the investments, leaving victims with significant financial losses,” said the report.
These scam operations involve stolen data, fake profiles, and rigged trading platforms to steal money from unsuspecting victims.
As a part of a well-organised structure, criminals purchase hacked stock trading data from brokers who source it from underground forums, the report noted.
“These brokers sell the data to organised crime groups that operate large-scale trading scams. The crime groups employ handlers and actors to execute scams, posing as successful investors and using social media platforms to lure victims into WhatsApp groups,” said the report.
Apart from India, geographies such as Malaysia, USA, Thailand and Vietnam are among the primary targets of these investment scams.