₹2.51 crore was lost to fake trading apps in a sophisticated social engineering attack.
Online Investment Scam in India, according to Prof. Triveni Singh, a cybercrime expert and former IPS officer, rely heavily on social engineering rather than technical hacking, and this is exactly what played out in the case of Vaidyanathan.
An 80-year-old resident of Cox Town, Bengaluru, Vaidyanathan was defrauded of ₹2.51 crore after falling victim to a sophisticated social engineering attack carried out through a fake online investment scheme.
The Incident
The fraud began in January 2026, when Vaidyanathan came across a Facebook advertisement offering stock tips and block trading opportunities in IPOs. The promotion falsely claimed to be associated with a reputed private bank and its securities division.
Trusting the authenticity, he shared his personal details through the link provided.
Soon after, he was contacted by individuals posing as bank officials, including a woman identifying herself as Anvika Mehra. They guided him through the process and convinced him to download two mobile applications—KOTMOT and KOTPRO—from the Google Play Store.
These apps appeared legitimate but were actually fake stock trading apps designed to display fabricated real-time profits. At one point, the apps showed his investment growing to nearly ₹5 crore, creating a false sense of success.
Using this as leverage, the fraudsters introduced an IPO opportunity and pressured him to deposit an additional ₹3 crore to secure allotment.
Police Complaint & Investigation
When Vaidyanathan attempted to withdraw funds or seek support, all communication stopped. The apps became unresponsive, and even the WhatsApp group posing as official support went silent.
Realizing the fraud, a complaint was filed with the cybercrime authorities.
Police have registered a case under:
- Sections 66C and 66D of the Information Technology Act, 2000
- Section 318(4) of the Bharatiya Nyaya Sanhita, 2023
Authorities are currently conducting digital forensic investigations to trace the transactions and identify those involved.
Modus Operandi
This financial cybercrime followed a structured approach:
- Attraction
A fake Facebook advertisement promoting IPO and stock investment opportunities - Impersonation
Fraudsters posing as bank officials to establish credibility - Platform Setup
Use of fake stock trading apps (KOTMOT & KOTPRO) to simulate real trading - Trust Building
Display of fabricated profits (up to ₹5 crore) to gain confidence - Pressure Tactics
Introduction of an IPO scheme requiring urgent additional investment - Fund Diversion
Money transferred across multiple bank accounts to avoid detection - Disappearance
Communication abruptly stopped once funds were fully extracted
Total Financial Loss
Between February 23 and March 24, 2026:
- A total of 23 transactions were made
- Over ₹2.51 crore was transferred
- Funds were routed through multiple accounts controlled by the fraudsters
What You Can Learn from This
This case highlights critical lessons for individuals and organizations:
- Do not trust investment offers from social media ads
- Always verify through official banking or trading platforms
- Avoid downloading unfamiliar apps, even from trusted app stores
- Be cautious of platforms showing unrealistic or rapid profits
- Never rely on WhatsApp groups or unknown advisors for financial decisions
Most importantly, understand that social engineering attacks target your trust, not your system.
Final Thought
This incident reinforces that cyber threats today are not just technical—they are psychological. Even a well-informed individual can be misled when trust is carefully engineered.
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