How online trading scams work: Hyderabad cyber police advisory
HYDERABAD: The Cybercrime Unit of Hyderabad City Police has issued a public advisory warning citizens about a sharp rise in online trading and investment frauds, where scammers promise high or guaranteed returns through cryptocurrency, forex and stock trading.
Police said fraudsters are approaching potential victims through social media platforms, Telegram channels and WhatsApp groups, often posing as investment advisers or trading agents. Victims are shown fake trading dashboards or apps displaying manipulated profits to induce further payments, officials said.
How the fraud operates, police explain
According to the advisory, scammers typically make unsolicited contact online and gradually build rapport before offering a trading opportunity with quick returns. Victims are first asked to invest small amounts and are provided step-by-step guidance to create an illusion of legitimacy.
After the initial investment, fake profits are shown on manipulated platforms. When victims attempt to withdraw funds, they are asked to pay multiple charges such as taxes, currency conversion fees, withdrawal or compliance charges. Each payment leads to fresh demands, police said.
If victims hesitate, fraudsters resort to threats, including legal action or claims that funds will be frozen. Despite showing large wallet balances, withdrawals are never allowed, the advisory noted.
Police urge caution and prompt reporting
Hyderabad police advised citizens to verify the authenticity of trading platforms and check registrations with the Securities and Exchange Board of India before investing. People have been cautioned against trusting unsolicited messages and promises of guaranteed returns.
The advisory also warned against sharing bank details, one-time passwords, passwords or UPI PINs, and stressed that genuine platforms do not demand “processing fees” for withdrawals.
Citizens who suspect fraud have been urged to report immediately to the National Cybercrime Helpline by dialling 1930 or through cybercrime.gov.in. Police also asked the public to follow official Hyderabad cybercrime social media handles for updates.
