Investor Duped in Rs 4.8 Million Clone Broking Scheme Using Forged SEBI Credentials

Indian police are investigating a major cyber fraud in which a 52‑year‑old trader lost nearly Rs 4.8 million after being tricked into a fake “block trading” scheme. The fraudsters posed as representatives of a reputed broking firm and used forged Securities and Exchange Board of India (SEBI) documents to convince her that the investment was legitimate.

How the Scam Worked

The victim first saw a Facebook advertisement about stock market investments. She was then added to a WhatsApp group that falsely presented itself as a “market insights” forum linked to a well‑known broker.

A woman, claiming to be a company representative, contacted her directly and promised high returns through “QIB (Qualified Institutional Buyer) block trading.”

To build credibility, the fraudsters created a cloned website that looked identical to a genuine broking platform. The victim and her family were persuaded to open multiple accounts there.

The dashboard was manipulated to show profits, and small withdrawals were allowed to make the scheme appear authentic.

Over several weeks, the victim and her family were instructed to transfer funds into multiple bank accounts and UPI IDs. Payments were described as capital deposits, compliance charges, and trading allocations. Police records show the money was routed through accounts in small finance and private banks.

When the victim tried to withdraw a larger profit, the fraudsters demanded an additional Rs 1.934 million as “commission.” After she refused, communication was cut off, and her access to the trading platform was blocked.

Investigators found that the accused had used forged SEBI letterheads, fake customer support numbers, and cloned brokerage websites to mislead investors. A case has been registered under charges of cheating, forgery, and unauthorised electronic access. 

In a separate case this month, multiple investors lost significant sums after falling victim to fraudsters claiming to be representatives of firms purportedly registered with the SEBI.