Fake trading apps, WhatsApp groups and online training sessions: How a retired engineering college principal lost Rs 8 crore to stock trading scam – Times of India

In a shocking case of online fraud a 59-year old retired principal from a prestigious engineering college in Hyderabad lost a huge sum of Rs 8.1 crore.
Resident of Hyderabad, Chennupati Vijayakumar became a victim of an elaborate investment scheme scam. Vijayakumar began transferring funds through a fraudulent investment app called RK Global in July 2024. The app initially allowed him to withdraw a small sum, creating a sense of legitimacy. However, subsequent attempts to withdraw larger amounts were met with failure, despite the app showing the funds as available. When Vijayakumar inquired about this discrepancy, the app’s supposed customer care service advised him to pay a further 2% of his total investment, amounting to a staggering Rs 37.5 crore.
Realising he had been duped, Vijayakumar filed a complaint with the Telangana State Cyber Security Bureau on October 21.
Here’s what happened
According to the police complaint filed by Vijayakumar, he first received a call from a woman in July 2024. The woman claimed to work for a company called ‘SIG Group‘ and invited him to join a WhatsApp group named ‘SIG Trading’.
Vijaykumar joined the WhatsApp group and participated in online trading sessions led by ‘SIG Group Teacher’ Eric Robertson and his assistant, Lyons. The group provided regular updates on market trends, block trades, and IPO opportunities, gradually persuading Vijayakumar to invest.
On July 15, Vijayakumar was added to another WhatsApp group, ‘E26-RK Global Customer Care.’ Here, he received trading advice and IPO recommendations through the ‘RK Global’ app, provided by the scammers. The fraudsters claimed to have connections with ‘institutional investors’ and promised guaranteed IPO allotments, luring Vijayakumar with the prospect of substantial profits.
After this, Vijaykumar started transferring funds through the RK Global totalling over Rs 8.1 crore till October 3. Initially, Vijayakumar was able to withdraw a small amount of Rs 2,000. However, subsequent withdrawal attempts, though displayed as successful on the app, did not reflect in his bank account. When he raised concerns with RK Global’s customer care, he was instructed to pay 2% of his total balance, amounting to Rs 37.5 crore, to resolve the issue. Despite facing financial difficulties, Vijayakumar was pressured to pay Rs 75 lakh in multiple transactions. However, the withdrawal issues persisted.
After facing repeated demands for more payments, Vijayakumar became suspicious. An online search confirmed his doubts, leading him to report the incident to the cybercrime helpline on October 18.