Mumbai Sees Surge in Share Market Scams, Investors Lose Crores to Fake Platforms and Deepfakes

Thousands of Mumbaikars have fallen prey to elaborate share market scams this year, losing significant amounts to fraudulent trading platforms that falsely promise quick profits. Between January and September, Mumbai Police recorded 665 share investment fraud cases, with cumulative losses amounting to nearly Rs 400 crore. These cases represent a fraction of the 3,372 cybercrime complaints filed during the same period, but stand out due to their advanced nature and scale.

Modern investment traps are highly sophisticated, moving beyond simple phishing. Scammers create entire ecosystems, including fake trading platforms, cloned websites, and convincing WhatsApp groups. They begin by building trust, offering 'stock tips' or insider information. Once a victim is enticed to invest on a platform that shows seemingly real 'live profits,' the scam culminates when withdrawal requests are denied and the entire operation vanishes.

A new wave of these scams in 2025 has seen the use of deepfakes. Mumbai Cyber Police have busted rackets employing artificially generated videos of well-known business anchors and market experts endorsing these fraudulent platforms. These videos are highly convincing, making it difficult for individuals to distinguish them from genuine broadcasts.

Impact This news significantly impacts investor confidence in the Indian stock market. Such widespread fraud can deter new investors and make experienced ones more cautious, potentially leading to reduced market participation and liquidity. It highlights the need for heightened vigilance among investors and regulators. Rating: 8/10

Difficult Terms Explained: Phishing mail: An email or digital message designed to deceive individuals into revealing personal information, such as passwords or credit card details, by impersonating a trustworthy entity. Deepfakes: Highly realistic, artificially generated videos or audio recordings created using artificial intelligence, often making it appear as though someone said or did something they never actually did. In this context, they are used to impersonate financial experts to endorse fake investment platforms. SEBI (Securities and Exchange Board of India): The primary regulatory body for the securities market in India, responsible for ensuring fair trade practices, investor protection, and market integrity. Investors are advised to check if platforms are registered with SEBI.