Quote: "Instead of going behind a 100 Crores project, go behind your dream's worth 1∞ Crores."

Introduction: This story is inspired by real-world events to create awareness about fraudulent investment schemes. The intention is purely educational, aiming to protect individuals from scams and promote genuine business practices.

The Story: A group of smooth-talking scammers formed a team specializing in pitching seemingly lucrative investment opportunities. They approached small and medium-sized businesses, claiming to help secure investments for their projects.

Their pitch was tempting: "We will connect you with high-profile investors who are looking for innovative ideas just like yours." The scammers promised grand results but were running a well-calculated fraud in the name of investment assistance.

In reality, they never facilitated any actual investments. Instead, they upsold overpriced services such as:

  • Professional project reports (₹50,000 to ₹1,00,000)
  • Website development and marketing (₹1,00,000 to ₹2,00,000)
  • Branding packages and social media ads (₹75,000 to ₹1,50,000)
  • Feasibility studies or App Making (₹50,000 to ₹75,000)

Each victim ended up paying between ₹3,00,000 to ₹5,00,000 for these "services," believing they were essential for attracting investors.

The Bigger Scam: For example the scammers targeted 100 businesses and ran the same playbook on each. With each victim paying around ₹5,00,000, the scammers amassed ₹5 Crores in total. This wasn't the end—they added hidden charges, including:

  • Middleman Commission (5% of the project value): "This will help us secure investor interest."
  • Bribe Commission (5%): "Investors expect us to smoothen the process."
  • Processing Fees: "Required for background verification." and many other...!

Victims were convinced these charges were standard, ensuring the scammers earned even more.

How the Scam Operated:

The group operated like a well-oiled machine. Here’s a step-by-step breakdown of their fraudulent process:

  • Identifying Victims: The scammers targeted small and medium-sized businesses in need of funds. These were often startups or struggling firms desperate for financial backing.
  • Building Credibility: They created a polished facade, complete with a professional-looking website, fake testimonials, and a portfolio of "successful projects" (entirely fabricated).

They often rented office spaces in prime locations to project legitimacy.

Mathematical Breakdown of the Scam:

Let’s calculate how much the scammers earn if they target 100 startups. If each startup pays ₹5,00,000 for services, the total earnings from these services alone amount to:

₹5,00,000 x 100 = ₹5 Crores.

Adding hidden charges, like middleman commissions and bribes, the scammers can extract an additional 10% (5% middleman commission + 5% bribe commission) from each project. For a ₹5,00,000 service fee, this totals:

  • 10% of ₹5,00,000 = ₹50,000 per startup.
  • ₹50,000 x 100 = ₹50 Lakhs in extra fees.
  • Including all earnings, the scammers’ total income becomes:
  • ₹5 Crores (service fees) + ₹50 Lakhs (extra fees) = ₹5.5 Crores.

This doesn’t even account for other small charges like processing fees or unexpected costs, which can add another ₹10,000 to ₹20,000 per startup. By preying on 100 businesses, the scammers effectively steal massive amounts under the guise of helping them.

The Pitch:

  • Their representatives were trained or self trained to sound convincing, knowledgeable, and supportive. They promised to secure investments quickly and effortlessly.
  • They used technical terms and emphasized the "urgency" of the opportunity to pressure victims into signing up.

Upselling Services:

Once the business owner showed interest, they were informed that certain services were mandatory to attract investors. This included creating professional project reports, websites, and marketing campaigns.

These services were priced exorbitantly but presented as non-negotiable.

Adding Hidden Costs:

After initial payments, the scammers demanded additional fees for middleman commissions, bribes, and processing charges. Each new demand was justified with plausible explanations.

Delaying Tactics:

To avoid suspicion, they dragged out the process, claiming delays due to investor unavailability, market conditions, or bureaucratic hurdles.

Victims were strung along for months, believing progress was being made.

Disappearing Act:

Once the scammers had extracted the maximum amount, they severed all communication and vanished, leaving victims with nothing.

Impact on Victims: The financial losses were devastating, but the emotional toll was even greater. Many victims blamed themselves for falling for the scam. Businesses that were already struggling faced closure, while others spent years recovering from the setback.

One victim, a small manufacturing unit owner, shared: "They seemed so professional. I trusted them completely. Now, I’m left with debts and no investor."

Awareness Campaign:

It’s crucial to educate people about such scams to prevent others from becoming victims. Here are some tips to stay safe:

Verify Credibility: 

  • Research the company thoroughly. Check their registration, reviews, and previous clients.
  • Visit their office and ask for references from genuine investors or successful projects.

Consult Professionals:

Before investing in such services, consult a trusted investment expert or legal advisor. They can help you evaluate the legitimacy of the opportunity.

Avoid Pressure Tactics:

Scammers often create a sense of urgency to force quick decisions. Take your time to analyze the offer.

Check for Red Flags:

Overpriced services, vague promises, and requests for bribes are clear signs of a scam.

Demand Transparency:

Ask for detailed contracts and written guarantees. Refuse to pay any hidden fees without proper documentation.

Why This Matters:

Frauds like these tarnish the reputation of genuine businesses and make it harder for legitimate entrepreneurs to secure funding. By exposing these scams, we can create a safer environment for honest business practices.

Real-Life Examples: Similar scams have been reported worldwide, with victims ranging from startups to large enterprises. Authorities have cracked down on several such operations, but new scams continue to emerge. Staying informed is the best defense.

The Final Blow

  • After months of delays and extracting every possible payment, the scammers informed the victims that their businesses did not meet the "stringent criteria" of investors.
  • Common excuses included insufficient market potential, lack of innovation, or failure to meet compliance standards. This explanation was presented professionally, leaving victims with little room to argue.

By this point, the scammers had vanished, leaving no trace behind.

Conclusion: This story is only for educational purposes. I deeply appreciate and support real, genuine business and investment opportunities. However, scams in the name of business projects and investments harm everyone involved. Stay vigilant, consult experts, and protect yourself from fraudulent schemes.

Remember: Your dreams are worth more than any scam can promise. chase them wisely.

Final Note: If you lose money, you can earn it back. But if you lose time, it’s never coming back. Protect your time and resources by making informed decisions.