Stock trading has long been considered one of the most lucrative avenues for wealth accumulation, but it also comes with its fair share of complexities, risks, and regulatory requirements. For many, the formal stock market system is daunting and cumbersome, which has led to the rise of "dabba" trading, an underground, off-the-books practice that operates outside the purview of legal oversight. Dabba trading, which thrives on trust and personal relationships, has been around for years, but a more sophisticated digital version of this illegal practice has recently emerged, targeting unsuspecting investors.
In an investigation, India Today’s Open-Source Intelligence (OSINT) team uncovered a widespread network of platforms that promise to facilitate dabba trading, often involving black money. These platforms are being promoted through messaging apps like WhatsApp and Telegram, which adds an additional layer of anonymity and convenience for users. Many of these platforms even have mobile applications designed for beginners, giving them a false sense of legitimacy and security. However, beneath the surface, these platforms are nothing more than scams designed to exploit individuals seeking quick returns on their investments.
One of the primary platforms identified in the investigation is "Bear & Bull Dabba Trading." It claims to offer users the opportunity to invest through its website and an Android mobile application, which is shared through messaging apps by operators. The app itself is designed to mirror the interface of legitimate, well-known trading platforms such as Zerodha, making it even more deceptive. By imitating the design and functionality of popular platforms, these fraudulent apps lower users' guards and encourage them to invest their money without question.
Forensic Details
A closer inspection of the domain registration details for the website bearbull[.]co revealed that it was registered only six months ago, suggesting it was a relatively new operation. The mobile app for this platform, however, is conspicuously absent from official app stores like the Google Play Store or Apple App Store. This is a major red flag since legitimate apps are typically listed on these platforms after undergoing rigorous vetting processes. Instead, the website was hosted on an IP address (148.113.16.91) that is also used to host 18 other similar dabba trading websites. These sites share striking similarities in terms of layout, design, and functionality, suggesting they are part of an organized network targeting unsuspecting investors.
The coding structure behind these sites reveals stunning similarities that link them back to a single cloud service provider—Ovhtech R&D (India) Pvt. Ltd. This suggests that the platforms are not only connected through their infrastructure but also operated by the same group or individuals. In addition to "bearbull[.]co," several other sites, such as deltatrade[.]site, angelone[.]tech, and nextrade[.]pro, have also been identified as part of this network. These sites impersonate legitimate financial platforms, offering trading services in various financial instruments, including stocks, commodities, futures, and even cryptocurrency. The fact that all these domains were registered after June 2024 adds another layer of suspicion, as it indicates a coordinated effort to launch these platforms at the same time.
Scam Tactics and Warning Signs
The modus operandi of these scam websites follows a typical pattern used by fraudulent investment schemes. They attract new users by offering the allure of high returns on small investments. Once investors have been lured in, the sites create a sense of excitement and urgency, encouraging them to invest more money in the hope of generating even greater returns. This creates a cycle of hype, which convinces users to pour in more capital. Eventually, once a sufficient amount of money has been accumulated, the operators of the scam sites shut them down, disappearing with the funds and leaving investors with nothing.
For example, the site "angelone[.]tech" leads users directly to a registration page where they are asked to input a mobile number, password, and an auto-generated user ID. When the India Today team tested the registration process using an imaginary phone number, the site accepted the entry without any verification. After logging in, users are presented with options to trade various instruments, including stocks, commodities, futures, and cryptocurrency. The "Deposit" page requests money via UPI ID or a bank account registered with an HDFC Bank branch in Navi Mumbai’s Ghansoli. This is indicative of a larger, coordinated effort to defraud individuals by funneling money through a single bank account, which is likely part of the scam's network.
Furthermore, the platforms in question appear to be organized into a network of interconnected sites. Multiple sites use the same bank account for users to make deposits, and the user registration data from these platforms is stored in a shared database. This level of coordination suggests that these sites are operated by a well-organized group, rather than by independent entities. Additionally, the sites often restrict users from registering with the same phone number across multiple platforms, further indicating a deliberate effort to control and monitor user activity.
Implications and Risks for Investors
These emerging scams underscore the serious risks involved with dabba trading, particularly in the digital age. While dabba trading has always been illegal and risky, the advent of online platforms and mobile apps has made it easier for scammers to target larger numbers of people, especially those unfamiliar with the formal stock market system. For investors, the biggest danger lies in the lack of regulation and transparency, which leaves them vulnerable to exploitation.
The use of messaging apps and social media to promote these fraudulent platforms is another significant concern. These apps provide a sense of anonymity, making it harder to track down the individuals behind the scams. The promise of high returns and easy profits can be extremely enticing, especially in today’s fast-paced, high-risk trading environment. However, as with any investment, it’s important to exercise caution, do thorough research, and avoid engaging with platforms that are not regulated or officially recognized.
Investors are strongly advised to avoid sharing personal or financial information with unverified platforms and to report any suspicious activities to relevant authorities. Regulatory bodies must also take stronger action against such scams, implementing stricter controls to safeguard investors from falling prey to fraudulent schemes like dabba trading. As always, when it comes to investments, if something seems too good to be true, it probably is.
