September 28, 2026, (Inside AI) — A 47-year-old engineer in Bengaluru has lost Rs 1.94 crore in a trading scam that began with a Facebook advertisement for a "Quantum AI" investment scheme, according to a police complaint filed earlier this month.
The engineer, a resident of J K Halli, told the East CEN police station that he clicked on the ad in February 2026 and was subsequently contacted by a representative who persuaded him to join the Proxtrend trading platform. He began trading on February 27 and transferred a total of Rs 1,94,68,235 between that date and September 9.
The case, registered on September 17, highlights a growing trend of fraudsters leveraging artificial intelligence branding to lend false credibility to online investment schemes. The complaint names charges of cheating, identity theft, and impersonation.
The engineer said he dealt with a man identifying himself as "Raja S", an account manager who guided his trades and transactions. The platform's website, proxtrendltd.com, describes Proxtrend Ltd as registered on Mwali (Moheli) Island in the Comoros and regulated by the Mwali International Services Authority. It lists a Fomboni address and offers CFD (contract for difference) trading with a standard risk warning about capital loss, according to the FIR.
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Concerns arose when the engineer attempted to withdraw his funds. He had managed only small withdrawals earlier and was told the process was "difficult." When he sought larger amounts, he said he was pressured to trade further, including through high-volume "lots" described as a method to move funds to a "safe account."
On September 9, he formally requested a withdrawal under reference number 3656. More than 48 hours later, it remained unprocessed. Instead, he received messages urging more trading and additional fund arrangements.
The engineer also said he was told his money was held up by requirements involving HSBC and supposed TCS or government-related conditions. Some discussions allegedly involved further payments of Rs 50 lakh or Rs 20 lakh to release the funds.
"The money would already have been diverted to multiple accounts and converted to cryptocurrency," a police source said.
The use of "Quantum AI" in the ad reflects a broader pattern where scammers appropriate cutting-edge technology terms to deceive investors. Quantum computing, still largely experimental, has no known consumer trading applications. Yet the term carries an aura of sophistication that fraudsters exploit.
This incident also underscores the challenges of cross-border financial fraud. The Comoros-registered entity and the involvement of multiple accounts and cryptocurrency conversions complicate recovery efforts. Indian authorities have previously warned about unregulated offshore trading platforms targeting retail investors.
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In a related development, Bengaluru police recently uncovered a fraud network involving fake apps, mule accounts, and cryptocurrency trails. Such cases often involve layers of obfuscation that make tracing funds difficult.
The engineer's complaint serves as a cautionary tale about the risks of online investment schemes promising high returns through AI-driven trading. Authorities continue to advise investors to verify the regulatory status of any platform and to be wary of unsolicited ads on social media.
The investigation is ongoing, and no arrests have been reported so far.
