Over 200 investors in Karnataka have been duped of nearly Rs 2 crore by a fake investment app called Trump Hotel Rental. This scam used AI-generated videos of former US President Donald Trump to lure victims. Cybercrime police are now investigating this fraud, which has spread across multiple districts in the state.
For the average investor, this scam is a sharp reminder to stay cautious. Many were drawn in by promises of quick, huge returns.
The app claimed users could make over 100% profit in a short time. Instead, they lost their money. The scam preyed on people’s hopes for easy work-from-home jobs and fast money through investments.
How the Scam Worked
According to Haveri Superintendent of Police Anshukumar, the app grew popular via targeted social media ads. Users paid small registration fees—about Rs 1,500—and were initially paid Rs 500 to build trust.
This is the classic “trust but scam” move. Once users believed in the app, they were coaxed to invest larger sums.
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A Bengaluru lawyer said he lost Rs 6 lakh after trusting the app between January and April. Some investors were even asked to pay fake taxes on their “earnings” before the app disappeared. Victims were shown fake dashboards with inflated earnings to keep them hooked.
The scam was not just about investments. It also offered fake work-from-home tasks like writing company profiles. These tasks came with promises of daily earnings, further trapping people into investing more money.
Police Action and Ongoing Investigation
Over 15 cases have been reported in Haveri alone. Yet, police believe many more victims have not stepped forward. The Cybercrime Economic Offences and Narcotics unit is digging into digital trails to catch the scammers. Though the app and related online platforms are shut down, authorities warn similar scams could pop up under new names.
No arrests have been made so far, but the probe is active across Karnataka districts including Bengaluru, Tumakuru, Mangaluru, Hubballi, Dharwad, and others.
This scam is a wake-up call for Karnataka investors and the general public. The lure of AI-generated celebrity endorsements can fool even the sharpest minds. Always verify before investing and be wary of promises that sound too good to be true.
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