A new wave of cyber fraud is targeting Indian investors, with scammers posing as authorised representatives of foreign portfolio investors (FPIs) or foreign institutional investors (FIIs) registered with the Securities and Exchange Board of India (SEBI). These fraudsters, many of whom operate from overseas, use high-pressure tactics, slick digital platforms and false promises of high returns in forex and stock trading to con victims out of large sums of money.
In one such case, a 42-year-old businessman from Thane in Maharashtra was allegedly duped of Rs4.11 crore after being lured into a fraudulent forex trading scheme. According to the Thane cyber police, the victim was approached through an online platform and persuaded over time to transfer large amounts under the guise of high-return foreign investments.
A case has been registered against four individuals — Tracy Clerk, Paul J Tudor, Bran Camron and Benjamin Jadore — and an online entity named Metaxoption Company. Investigators believe these foreign nationals ran the scheme through deceptive trading apps and websites designed to appear credible.
The police are now working to track the digital trail and freeze assets linked to the accused. The businessman was reportedly shown fake profits and promised extraordinary returns. He was also instructed to download unverified apps that looked professional but were part of a carefully orchestrated fraud.
Anatomy of the Scam
This case is part of a growing cybercrime trend where fraudsters pose as authorised agents or traders linked to SEBI-registered foreign portfolio investors (FPIs) or FIIs. To appear credible, they share fake SEBI registration numbers, use official-sounding email addresses, and operate professional-looking websites or mobile apps that mimic genuine trading platforms.
These scammers, typically, reach out to potential victims via social media platforms, online investment forums, or bulk messaging campaigns. They often claim to offer exclusive access to initial public offerings (IPOs) or overseas trading opportunities and convince users to download unverified apps or register on suspicious platforms.
Using technical jargon and fake dashboards, they create the illusion of profits and try to rush victims into investing by triggering a fear of missing out (FOMO). Initially, small returns are shown to build trust. Once the victim is hooked, they are asked to invest larger amounts.
When the victim attempts to withdraw money, the fraudsters either vanish, cut off all communication, or demand additional charges disguised as ‘processing fees’. By then, the damage is often done.
Not Just One Case: A Worrying Pattern
This is far from an isolated incident. Cybercrime units across India have received numerous complaints involving fake trading apps operated by foreign entities, shell companies registered in offshore tax havens, and unauthorised platforms misusing terms such as ‘FPI’, ‘offshore wealth fund’, or ‘global IPO access’ to appear credible.
Recognising the rising threat, SEBI and major stock exchanges have launched awareness campaigns to warn investors about these foreign portfolio investment scams.
In a post on X (formerly Twitter), the Bombay Stock Exchange (BSE) cautioned investors:
“Fake portfolio management apps are getting harder to spot — polished UI, bold promises, and AI buzzwords included. But behind the shine, they’re designed to steal your data, your trust, and your money. Always verify before you tap. Only invest via authorised platforms.”
Tips To Protect Yourself from Foreign Investment Scams
Here are seven key precautions every investor should take to safeguard their money from online fraudsters posing as foreign investment agents:
1. Verify SEBI Registration
Always verify the credentials of anyone claiming to be an FPI or FII agent by checking the official SEBI website. Do not trust forwarded PDFs or screenshots — these can be faked. Visit:
https://investor.sebi.gov.in
2. Avoid Unverified Apps
Never install trading apps from unknown links, emails or messages. Use only apps listed on the Google Play Store or Apple App Store, and read user reviews carefully. For a list of authorised trading platforms, visit: SEBI Investor Support
3. Be Wary of 'Exclusive' Offers
Genuine IPOs and investment opportunities are never offered through unsolicited messages or social media posts. If it sounds too good to be true, it probably is.
4. Say No to Pressure Tactics
Be cautious of anyone urging you to invest immediately. Legitimate advisers will always give you time to research, think, and consult others before making a decision.
5. Consult a Certified Financial Advisor
Before making any overseas investment, speak to a SEBI-registered financial advisor. Many professionals also help detect fraudulent schemes as part of their services.
6. Watch Out for Fake Dashboards
Scammers often create dashboards showing fake profits and returns to build trust. Do not be influenced by fancy graphs or inflated numbers — always verify with independent sources.
7. Report Suspicious Activity Immediately
If you suspect you’ve been targeted, report it without delay to your local cyber police station or through the National Cyber Crime Reporting Portal at
https://cybercrime.gov.in.
What SEBI Says
The market regulator has consistently cautioned investors against dealing with unregulated entities and warned them to invest only through SEBI-registered intermediaries.
Always remember, SEBI does not endorse or certify any specific trading app, nor does it offer direct access to IPOs via social media platforms.
In a recent advisory, the market regulator stated: “Investors are advised not to share personal details or make payments on any platform that is not registered with SEBI. When in doubt, seek help from authorised advisors or the investor grievance cell.”
In a digital age where investment opportunities are just a click away, the risks have grown just as fast. Cybercriminals are increasingly targeting financially literate, tech-savvy individuals by exploiting their desire for high returns. As the Thane case shows, even experienced professionals can fall prey to such elaborate scams.
Stay alert. Verify every claim. Always invest through trusted, SEBI-regulated channels. If something seems off or too good to be true, it probably is.
