ED raids reveal multi-city stock tip scam using WhatsApp, lakhs defrauded

The Enforcement Directorate has uncovered a large-scale investment fraud scheme operating across six cities, in which fraudsters lured lakhs of retail investors through WhatsApp with promises of 'multibagger' stock returns. The scam involved promoting penny stocks with guarantees of exponential gains, after which stock prices were allegedly manipulated to crash, leaving investors with substantial losses.

ED raids conducted across multiple locations revealed a coordinated network of operators running the scheme. Victims were targeted through WhatsApp groups and messaging, where fraudsters presented themselves as investment experts offering exclusive stock tips expected to multiply investments many times over.

Once a sufficient number of investors had purchased the promoted stocks, prices were allegedly driven down artificially, resulting in heavy financial losses for the retail participants. The investigation is ongoing to identify all individuals involved in the fraud and trace the proceeds generated through the scam.