Fake Algo Trading Software Reviews & Complaints
Scam / fraud
Reported By: Algo Trading Scam
How Greed Leads Investors into Scam Traps and How to Avoid Them
It’s often the greed of investors that makes them vulnerable to scams in the world of trading. If traders and investors could accept the realities of stock market trading, it would be much harder for scammers to ensnare them with fabricated schemes promising unrealistic profits.
Despite numerous alerts, cases, and widespread awareness efforts, many people continue to fall for so-called “guaranteed profit” schemes.
Take the case of Piyush (name changed), who recently reported to us that he had lost ₹95,000 in a scam involving fake algorithmic trading software.
With proper guidance and legal action, however, we helped him recover his full amount within a week.
Keep reading to understand how he got trapped and how our team assisted him in getting his money back.
The Deceptive Setup of a Non-Certified Algo Trading Software Company
Piyush, a beginner in trading, received a call from a company named Autotrades. They claimed to offer AI-powered algorithmic trading software that came with built-in strategies to guarantee consistent profits.
The pitch was irresistible:
- No manual intervention needed
- Guaranteed profitable trades
- Just fund the account, and let the software work its magic
Seeing this as an easy opportunity to make money, Piyush decided to invest ₹73,000 in purchasing the software.
What Happened Next?
After Piyush made the payment, the company linked the software to his Angel One demat account and instructed him to have funds available. They assured him that the software would handle trades on its own, generating profits automatically.
At first, things seemed promising—Piyush started with ₹5,000 and managed to make a small profit.
Encouraged by this initial success, Piyush increased his investment. But soon after, he suffered a massive ₹22,000 loss in a single day, leading to a total loss of ₹95,000 (₹73,000 for the software + ₹22,000 from trading losses).
Panicking, Piyush tried reaching out to the company, but they ignored his calls and messages.
How Our Team Helped Piyush Recover His Money
Realizing he had been scammed, Piyush contacted our team for help. We immediately sprang into action:
- Investigation: We discovered that Autotrades was neither registered with SEBI nor any recognized exchange, making their software illegal for trading.
- Filing Complaints: We guided Piyush in reporting the case on multiple consumer protection platforms.
- Legal Pressure: With mounting complaints and the risk of further exposure, the company’s director was eventually compelled to respond.
- Negotiation: After firm discussions and legal pressure, the director agreed to refund Piyush the entire ₹73,000 within a week.
Key Lessons for Investors
Piyush’s case is a stark reminder of the dangers posed by unregulated platforms.
If you’re considering algo trading or any similar investment, here are some crucial safety tips:
- Verify SEBI Registration: Always check if the company is registered with SEBI or any other regulatory body before investing.
- Avoid Guarantees of Profit: The stock market is inherently unpredictable—any company promising guaranteed returns is a major red flag.
- Never Grant Full Access to Your Demat Account: Never allow third-party software to control your trading account. It’s a breach of security and trust.
- Report Suspicious Activity Immediately: If you suspect fraud, take swift action. Learn how to report online frauds in India and make sure to follow the right legal processes.
Conclusion
Scammers thrive on the greed and lack of awareness among traders. While Piyush was fortunate enough to recover his money, many victims are not so lucky.
Always do thorough research before investing, and if you ever find yourself trapped in a scam, don’t hesitate to take quick legal action.