100% gains in 15 days: Stock traps emerge on social media, WhatsApp

Highlights:

• Fraudulent apps promise 50–100% returns in 15 days
• Fake platforms misuse DSE's name, logo, and company shares
• Investors lured with Tk1,000 fees, "discounted" share offers
• DSE, BSEC confirm schemes are unauthorised and purely fraudulent
• Awareness campaigns urge trading only via official DSE app
• Victims report losses; false tips collapse after brief price spikes

Small investors are once again being lured into dangerous traps with promises of extraordinary returns as some so-called investment platforms on WhatsApp groups and mobile apps are offering shares of listed companies, guaranteeing between 50% and 100% profits in just 15 days.

These schemes are presented with urgency and opportunity, inviting investors to open "high-net-worth" accounts and pay a nominal Tk1,000 membership fee. An app called "DSEXPro" on Android and "DSEXPRO" on iPhone claims to provide discounted shares, creating the illusion of fast gains.

One WhatsApp group monitored by The Business Standard advertised a discount offer on shares of GQ Ball Pen Industries, priced at Tk361 in the market. Members were told they could subscribe at Tk245 and sell on 26 August, yielding a floating gain of 47.35%.

A similar pitch was made for Khan Brothers PP Woven Bag Industries. Although its market price stood at Tk115.70, shares were offered at Tk96. The subscription period runs from 18 to 21 August, with the sale set for 24 August. The floating profit was shown as 20.52%.

According to Dhaka Stock Exchange (DSE) sources, listed company shares cannot be subscribed outside rights issues, which are meant for raising fresh capital. Even block market transactions fluctuate within 10% of the main market price.

On 3 August, the DSE lodged a complaint with Khilkhet police, warning that fraudsters were exploiting the DSE's name and logo to promote unauthorised apps and groups.

"They are setting traps with promises of unusual profits, deceiving small investors eager for quick gains," the complaint said.

The complaint said apps under its name – DSEXPro for Android and DSEXPRO for iPhone – were being used to lure investors with promises of quick and high returns. They even opened a WhatsApp group (+8801342261354) to directly contact members, enticing them with false promises of lucrative profits.

The Android Play Store lists DSEXPro as developed by ScrumLAB Tech Factory, while the iPhone App Store shows DSEXPRO developed by Ali Akbar.

Abul Kalam, spokesperson of the Bangladesh Securities and Exchange Commission (BSEC), told TBS that fraudulent groups become particularly active during bullish or stagnant phases of the market.

"They lure investors with promises of unrealistic returns. Our intelligence unit monitors social media closely to identify these networks," he said.

Saiful Islam, a seasoned investor, warned the offers are impossible outside casinos. "Investors who fall for them will be deceived. The BSEC and DSE must act firmly, or thousands could suffer."

Shafiqul Rahman, deputy general manager of the DSE's public relations department, confirmed that more than 10 fraudulent groups have been identified. 

"They use the names of listed companies to give the impression of insider knowledge, luring investors with promises of extraordinary profits," he said.

He added that the fake apps mimic official DSE platforms. "There is no way to trade shares through these apps. They are purely designed to defraud people. We have filed complaints and are working with law enforcement to bring the perpetrators to justice."

The DSE has also launched awareness campaigns, warning investors through social media and its website. "Ultimately, if someone chooses to invest in these schemes and suffers losses, the responsibility falls on them," Shafiqul said. 

In a media release yesterday, the DSE advised that only certified brokerage houses and the official DSE Mobile App are legitimate channels for share trading. Investors were urged not to be tempted by promises of abnormal profits.

Enticed by poor market

Offers are advertised on Facebook, with WhatsApp group links. One such group, "F01-DSE Securities Trading Strategy" claims to offer discounted block and placement shares, daily stock tips, and paid membership services.

The group states stock recommendations are shared daily at 11am under Chief Investment Officer Taha Mirza, with the aim of helping investors "seize quality opportunities."

It also promotes a paid membership service, claiming that members receive advance stock recommendations a day before prices rise, keeping them "one step ahead" of the market.

The group presents itself as part of DSE Securities, providing stock trading and strategy support from an address at 9/F, Motijheel Commercial Area, Dhaka.

The Business Standard spoke with several group members, who said the weak capital market had caused losses across most shares. Hoping for quick gains, they paid a Tk1,000 monthly fee to follow the group's advice, though none had deposited money for block share subscriptions. 

Small portfolios and investment amounts prevented even high-net-worth account holders from acquiring block shares; most merely monitored the recommendations.

One investor, Selim, described his experience: "Every day at 11am, they publish share picks. I bought a few based on their tips, but profits never came. When prices rise for a day or two, the shares are recommended. Then the prices fall again. It seems fake." 

He added that group members pressured investors to deposit money for block subscriptions, posting about supposed gains that he could not verify.

Experience of joining a group

This reporter joined a WhatsApp group via a Facebook link, which stated: "Hello, I am a customer service representative from the DSE Stock Exchange, responsible for providing strategic membership services and investment support to official DSE users. Are you contacting me to learn more about the 15-day investment plan with a target return of 50% to 100%?"

The message claimed that DSE Securities Exchange was launching a strategic membership service with a dedicated stock strategy department, promising returns of 50%–100% in just 15 days. Users were further offered a free 30-day membership, with guidance provided through the app.

Later, via phone, the service representative told potential members that joining the group would allow clients to earn up to 30% profit through block share subscriptions.

The initial link directed users to the "F01-DSE Securities Trading Strategy" group. High-net-worth investors were encouraged to pay a Tk1,000 registration fee to trade shares.

When asked for her name, the woman on the phone refused to provide it, instead identifying herself as a customer service representative. 

Asked about the office location, she replied simply: Dhaka, Bangladesh. She also claimed that the service was officially approved by the DSE and monitored by the BSEC and CDBL.

Both BSEC and DSE confirmed that no such approval had been granted. They stressed that the only legitimate platform for IPO or rights share subscriptions is the Electronic Subscription System (ESS); all other methods are fraudulent.

Investment fund offers

On 21 August, a WhatsApp group announced four investment fund tiers on DSEX, promising different returns with higher investments yielding higher profits. 

Tier 1, AI Quant Prarambhik Shanti Fund, claimed 1.98% return over three days for a Tk10,000 minimum deposit. Tier 2 offered 4.97% in seven days for Tk100,000. Tier 3 promised 12.75% in 15 days for Tk500,000, and Tier 4 claimed 27.99% in 30 days for Tk1,000,000.

When contacted, both the DSE and the BSEC confirmed they had no information on these funds. A BSEC official added that none of the authorised asset management companies manage such schemes, signalling that these offers are unauthorised and potentially fraudulent.