Hyderabad emerges as hub for online stock market fraud via WhatsApp
The city has become a major centre for online stock market fraud, with scammers using WhatsApp groups to lure investors. Cybercrime police say victims lost over Rs 500 crore in 2025, with salaried professionals and first-time investors most affected.
Hyderabad: The city has emerged as a major hotspot for online stock market fraud, with cyber fraudsters coming up with novel modus operandi and now allegedly exploiting WhatsApp groups to cheat investors.
As per an official estimate, several victims from the city were duped by fraudsters under online stock market frauds to the tune of more than Rs 500 crore during 2025.
According to the Cybercrime authorities, the fraudsters are largely targeting salaried professionals and first-time investors by offering seemingly credible stock tips and IPO investment opportunities.
In one of the latest cases, a software professional from Serilingampally lost Rs 2.9 crore after falling prey to a fake stock trading network operating through WhatsApp. The victim was initially added to an investment group where daily stock tips and market updates were shared. To build confidence, the fraudsters credited him with a small profit of Rs 5,000, which convinced him that the system was genuine.
Attracted by the early returns and repeated assurances from group administrators posing as market experts, the victim transferred larger sums in stages. The money was routed to multiple bank accounts and cryptocurrency wallets, after which the trading application stopped functioning and all communication ceased.
Cybercrime officials say the fraud follows a fixed pattern. Victims receive unsolicited links on WhatsApp claiming access to exclusive IPOs of reputed companies or guaranteed profits in the stock market. Clicking these links automatically adds users to closed groups where fake identities of well-known analysts and investors are used to post recommendations.
“To strengthen credibility, other members later found to be part of the same network share fabricated screenshots showing high profits. Victims are then instructed to download counterfeit trading applications that display manipulated profit figures, prompting them to invest more,’ said a senior Cybercrime official.
Investigations have revealed that Chinese nationals were the main masterminds behind many of these stock market frauds. Operating from countries such as Thailand, Cambodia and Myanmar, they manage the digital infrastructure and payment channels. Indian youth are reportedly lured abroad with promises of lucrative jobs and later forced to operate fraud call centres under threat and confinement.
Cybercrime police advisory:
• Investors should remain vigilant, not act on unsolicited advice
• Legitimate investments are made only through SEBI-registered platforms
• Never involve transferring money to personal bank accounts
• Exit unknown WhatsApp or Telegram groups immediately
• Ignore links promising assured or unusually high returns
• Victims can report to 1930 cybercrime helpline
• Prompt reporting improves chances of money recovery
