Sir,

This is in response to the recent news item titled ‘Rs. 4.41 crore trading fraud.’ Such reports have become a regular feature in Star of Mysore over the past two years.

I, too, came across a WhatsApp group promoting stock market trading about two years ago. Their modus operandi is to add unsuspecting individuals to a WhatsApp group containing numerous mobile numbers and invite them to attend seminars on technical analysis — a trading methodology used to evaluate investments and identify trading opportunities by analysing historical price data and volume, primarily through charts.

Most of the other members in the WhatsApp group actually belong to the fraud syndicate. They conduct so-called technical analysis training seminars online through Zoom and Microsoft Teams on mobile phones and desktops, which are often outdated or copied from other YouTube channels.

Initially, they gain the trust of participants through these seminars. Next, they begin giving tips on stocks to buy, along with target prices and time frames. The stock price movements appear to behave exactly as predicted, at least transiently, and they claim to have bought the stock at a certain price and booked profits — which is nothing but paper trading.

For instance, they claim that a particular stock will hit the 5 percent upper circuit the next day. That stock then hits the upper circuit in two or three days. They deliberately choose stocks with a 5 percent circuit limit, which can be easily manipulated. This convinces people that the tips are genuine.

The fraudsters — often women — further ensure secrecy by creating a sense of exclusivity, stating that applications for block trading are limited to only 20 members and open for just a few days, with an initial investment as low as Rs. 10,000.

People, not wanting to share this ‘lucrative opportunity’ with others, secretly and frantically invest money. Initially, they invest Rs. 10,000 and see huge ‘profits’ displayed on the fraudsters’ mobile applications, though these are not real.

Subsequently, they are persuaded to transfer much larger sums, as frequently reported in newspapers and eventually end up being cheated.

What is astonishing is that people transfer money directly to bank accounts. Can’t the CEN Police trace these bank account holders and take action against them?

– Hemanth Kumar, Mysuru, 29.12.2025

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