Chennai, Aug 31 (IANS) Greater Chennai Police have issued a caution to the public following a surge in online investment fraud targeting unsuspecting citizens in the city.
According to a statement released by Police Commissioner A. Arun’s office, cybercriminals have recently been misusing the names of reputable financial institutions to lure people into fraudulent schemes, leaving several victims defrauded.
The Central Crime Branch’s Cyber Crime Wing has been receiving a growing number of complaints against a racket operating in the guise of a well-known finance company.
Police investigations revealed that the group promotes deceptive advertisements on social media platforms, promising unusually high returns on investments. Once victims show interest, they are added to WhatsApp groups run by the fraudsters. Through these groups, people are persuaded to download fake investment applications and transfer money. To gain their trust, scammers initially allow small withdrawals under the pretext of profit distribution. However, once higher sums are invested, victims are informed that further deposits are mandatory to access the full amount, effectively trapping them into sending more money.
The police clarified that the bank accounts used for these transactions are in no way connected to the financial company being impersonated.
Crucially, the fraudsters provide no receipts, agreements, or documents as mandated by the Securities and Exchange Board of India (SEBI).
Authorities stressed that no SEBI-registered firm or legitimate private company communicates through WhatsApp groups or unauthorised apps for investment purposes.
Police Commissioner Arun urged the public not to fall prey to promises of extraordinary profits.
“People should exercise caution and avoid transferring money to accounts shared by unknown individuals claiming to represent financial institutions,” the statement warned.
Citizens were reminded that genuine firms provide proper documentation in line with SEBI regulations and never operate through informal chat groups.
Chennai Police also appealed to the public to report any suspicious investment advertisements or communications to the Cyber Crime Wing at the earliest.
Officials emphasised that raising awareness is key to curbing the menace, as online investment scams are becoming increasingly sophisticated in their methods.
With the rise of digital transactions, authorities reiterated the importance of verifying all financial opportunities through authorised channels before committing funds.
–IANS
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