Cybercriminals create fake website of stockbroker Sharekhan to dupe investors

Authorities have now launched an investigation to track down the perpetrators and prevent further financial losses to investors. Investors are urged to verify sources before making financial transactions and report any suspicious activities to regulatory authorities immediately

MUMBAI: Leading stockbroker Sharekhan has filed a complaint against cybercriminals who have been running multiple fraudulent websites mimicking its official platform. These scammers have been using Sharekhan’s logo, address, and reputation to deceive investors.

Cybercriminals create fake website of stockbroker Sharekhan to dupe investors

Sharekhan, a prominent Indian financial services firm offering stock trading, mutual funds, and wealth management services, reported that the accused have also created several WhatsApp and Telegram groups impersonating the company to defraud unsuspecting investors. Many victims who fell prey to the scam have since approached Sharekhan seeking redress. “We have registered a case against unidentified individuals under Section 319(2) of the Bharatiya Nyaya Sanhita, 2023, which pertains to cheating by personation, and Section 66(C) of the Information Technology Act, which deals with identity theft,” said a police officer from Shivaji Park police station.

The complaint was lodged by an assistant vice president from Sharekhan’s legal department. The firm, headquartered on Senapati Bapat Road in Dadar West, was founded in 1995 and is one of India’s oldest stockbroking firms. It is a public limited company registered with the Bombay Stock Exchange (BSE), National Stock Exchange (NSE), and Multi-Commodity Exchange (MCX), providing investors with a platform to trade in stocks and securities.

Investigators revealed that the frauds created fake websites by making minor modifications to Sharekhan’s domain name, often adding or altering just a few words. These fake websites, often shared via fraudulent links, also directed users to download mobile applications that replicated Sharekhan’s branding, further misleading investors.

“Given Sharekhan’s long-standing credibility, these fraudsters exploited the company’s name to gain investors’ trust. They created fake websites and mobile apps that closely resembled the original, tricking people into believing they were dealing with a legitimate firm,” said the police officer.

Additionally, the scammers set up WhatsApp and Telegram groups under Sharekhan’s name, posing as official representatives of the company. Investors lured into these groups were manipulated into making transactions, believing they were engaging with legitimate financial advisors.

“Several investors began reaching out to Sharekhan via email and phone, reporting fraudulent activities. When informed that Sharekhan had no such WhatsApp or Telegram groups, they realised they had been duped. Following a directive from the Securities and Exchange Board of India (SEBI), Sharekhan officials decided to approach the police, leading to the registration of the case,” the officer added.

The police further stated that multiple investors had also lodged complaints with SEBI and stock exchanges. These regulatory bodies subsequently advised Sharekhan to report the matter to law enforcement without delay.

Authorities have now launched an investigation to track down the perpetrators and prevent further financial losses to investors. Investors are urged to verify sources before making financial transactions and report any suspicious activities to regulatory authorities immediately.