Stock trading is considered one of the most lucrative businesses in India, yet it's bound by strict rules and regulations. To bypass these, some turn to 'Dabba Trading', an illegal practice based purely on trust. This digital form of Dabba Trading has become a new trap to deceive investors.
The open-source intelligence (OSINT) team has exposed several fake platforms claiming to offer Dabba Trading services. Promotions occur via WhatsApp and Telegram with various apps developed for these platforms.
The Fraud Network
Investigations revealed a platform named 'Bear & Bull Dabba Trading' allegedly offers investment facilities. Its website and app are shared via WhatsApp and Telegram, mimicking the interface of popular platforms like Zerodha.
The website's domain, bearbull[.]co, was registered just six months ago, and the app isn’t available on any official app store. Our investigation disclosed that bearbull[.]co and 18 other sites share the same IP address (148.113.16.91), designed and coded similarly, linked to Ovhtech R&D (India) Pvt. Ltd., a cloud service provider.
Some of these sites, such as deltatrade[.]site, angelone[.]tech, and nextrade[.]pro, imitate well-known trading platforms. Their domain registrations occurred post-June 2024.
Source: aajtak
How Does the Scam Work?
These sites operate similarly, initially gaining investors' trust by promising high returns on small investments, then persuading more investments. Once sufficient funds accumulate, the sites vanish.
For instance, angelone[.]tech directly leads to a registration page with an auto-generated user ID. A password and mobile number submission follows, accepted without verification. Upon logging in, trading options in stocks, commodities, futures, and even cryptocurrencies appear.
On the deposit page, a UPI ID and a bank account from HDFC Bank in Navi Mumbai's Ghansoli branch are requested. Our findings show these platforms are parts of an organized network, utilizing the same bank account and sharing user registration data across sites.
Source: aajtak
The Promotion Web
Scammers promote through Telegram, Facebook, and WhatsApp groups and channels. For example, the 'Bear & Bull Dabba Trading' Telegram group hosts 28,000 users, with an admin sharing trading details and WhatsApp chat links.
Within WhatsApp chats, a handler recommends starting trading with ₹500 and shares an APK file, alongside running sponsored ads on Facebook and Instagram.
Understanding Dabba Trading
Dabba Trading involves no actual trading; it resembles betting on stock prices with operators acting as brokers facilitating price bets. Entirely illegal, it poses significant fraud risks. In September 2024, Gujarat Police’s Special Investigation Team (SIT) uncovered a Dabba Trading scam involving ₹27.81 crore transactions.
Investors in Dabba Trading receive no legal protection or assistance in cases of fraud.
