Bengaluru realtor falls for Rs 1.30 crore ‘JP Morgan’ investment scam

A realtor from Bengaluru fell victim to an intricate stock investment scheme, losing over Rs 1.30 crore in nearly two months.

DH has learnt that the scammers allegedly impersonated a renowned US-based multinational financial services firm.

The scheme began on October 27, 2023, when the 43-year-old victim, Sukumar Shankar (name changed) received a WhatsApp message from an unknown woman, named Meenakshi.

Claiming to be an employee of JP Morgan, Meenakshi presented Shankar with "investment opportunities to earn excellent returns" along with Zoom classes held twice a day, offering stock tips and investment advice.

“I generally block spam messages,” Shankar told DH. “Unfortunately, I believed the woman. The way they set up the whole thing, even an experienced trader would not be suspicious.”

Shankar joined a WhatsApp group named 'MORGAN CAPITAL B5' and attended the Zoom classes, where an unnamed person provided stock tips.

On his agreement to invest, Meenakshi sent Shankar a website link, morganfinancialwealth.com, and instructed him to download an app named “JP Morgan”. A domain lookup revealed that the website was registered on September 24, 2023. However, the entire app turned out to be a simulation.

As Shankar transferred money to the bank accounts provided by the fraudsters, the sum and gains appeared on the app.

“This made me believe that it was authentic,” Shankar said. “There were also several people on the WhatsApp group who used to share screenshots of their earnings. This made it more believable.”

Meenakshi then informed Shankar about another “VIP” WhatsApp group, promising tips to multiply earnings tenfold. Shankar joined the group and continued transferring money.

“In the initial stages, I had received Rs 12,000 after placing a withdrawal request,” Shankar said.

On December 28, Shankar requested a withdrawal of Rs 10 lakh, which was rejected. By then, he had already “invested” Rs 1,30,10,000.

“They told me that there were some issues, and it would be solved soon,” Shankar said, but communications were abruptly cut.

Whistleblower

A day after his withdrawal request was declined, Shankar received a message from an unknown number saying, “these people are frauds” and urging him not to respond.

"I have a huge debt as I had borrowed money from several people and pawned my wife's jewellery," Shankar said. "I also used the sale proceeds of a land to invest in this."

Shankar filed a police complaint on January 3, and the case was registered under relevant sections of the Information Technology Act and the Indian Penal Code.

Bank response awaited

A cybercrime investigator revealed that details of the transactions were sought, and no funds transferred to the fraudsters have been frozen thus far.

Modus operandi

• Approach people on WhatsApp

• Introduce as employees of “JP Morgan”

• Coax victims into downloading dubious apps

• Show trade simulations to encourage victims to keep investing

• Cease communication after victims “invest” large amounts or grow suspicious