DSE flags scam syndicate duping investors

A fraud ring is posing as the Dhaka Stock Exchange (DSE) to trick unsuspecting investors into pouring money into bogus high-return schemes.

The group has been using the DSE name, logo, and even its official address to appear credible before approaching people on WhatsApp and other platforms.

Now, the DSE itself has publicly identified the scam and warned investors to be vigilant.

Mohammad Asadur Rahman, chief operating officer of the exchange, said the syndicate is already under intelligence surveillance and that its members are "expected to be brought under the law very soon."

Speaking at a press briefing at the Capital Market Journalists' Forum auditorium in Dhaka yesterday, he explained how the fraudsters build trust with a small, successful transaction.

"For example, they might take Tk 4,000 at first and return Tk 2,000 as profit. Gradually, the amount of money increases, and eventually, after taking a large sum, they switch off that mobile number," Rahman said.

He said the gang presents itself as official DSE representatives and lures people with promises of guaranteed profits.

"They first gain trust by showing small profits, then show a little more profit to lure larger investments. At some point, they inform the victim that the app has a problem and more money is required. After taking the additional money, the fraud syndicate blocks the victim."

The DSE filed a complaint with Khilkhet Police Station earlier this month.

Letters have also been sent to stakeholders inside the DSE building, and the Bangladesh Securities and Exchange Commission (BSEC) has been asked to involve law enforcement.

Rahman said one group linked to the racket has already been traced to Narayanganj. He added that while investor confidence in the market is on the rise, such scams are tarnishing its image.

"There is no scope for trading in the stock market without licensed stockbrokers, stock dealers, and mobile apps of the stock exchange," he said, urging the public not to fall for shortcuts or illegal trading offers.

Senior DSE officials, including Mohammad Shafiqul Islam Bhuiyan, chief regulatory officer, and Md Shafiqur Rahman, deputy general manager, were also present at the briefing.