In a major online investment scam, approximately 200 people across Karnataka were deceived by a fraudulent scheme involving a fake mobile application named ‘Trump Hotel Rental.’ Collectively, the victims lost over Rs 2 crore. The scam leveraged AI-generated images and videos of former US President Donald Trump to lure investors with promises of high returns and remote job opportunities.
The scam operated through an app that appeared legitimate and was branded as a "Trump Hotel Rental" platform. The victims were enticed to invest money with the assurance that they would earn daily returns by “renting out” virtual hotel rooms or properties through the app. This made the investment scheme appear authentic and attractive.
The app functioned for about five to six months before being exposed. Initially, it allowed users to withdraw small amounts, such as Rs 300, to build trust among investors. This tactic encouraged victims to invest increasingly larger sums, sometimes exceeding Rs 10 lakh. Once the victims invested significant amounts, the app ceased to function, and the scammers disappeared with the money.
One of the victims, a Bengaluru-based lawyer, reported losing Rs 6 lakh between January and April 2025. He explained that the fraudsters demanded tax payments on the earnings before vanishing. Many victims were also given fake work-from-home tasks, such as writing company profiles. These tasks came with inflated earnings displayed on their dashboards to encourage deeper investments.
One victim explained, “I was paid Rs 30 every day, and I was allowed to withdraw it once total earnings crossed Rs 300. As the money was being paid on time and I could withdraw it, they started asking me to invest more. It began with Rs 5,000 and ended at Rs 1,00,000. Finally, they asked me to pay taxes to withdraw the money. But they did not return it,” according to a complaint seen by The Times of India.
The police have registered around 15 FIRs related to the scam in Haveri district alone. Cases have also surfaced in other parts of Karnataka, including Bengaluru, Tumakuru, Mangaluru, Hubballi, Dharwad, Kalaburagi, Shivamogga, Ballari, and Bidar. Cybercrime officials are actively tracking the digital footprint of the scam’s organizers and urging more victims to come forward and report their losses.
Police officials revealed that the scam victimized over 800 investors in total, with some investing amounts as high as Rs 10 lakh, motivated by the promise of quick returns. The investigation is ongoing, and authorities are working to apprehend the perpetrators behind this sophisticated online fraud.
This scam serves as a warning about the increasing sophistication of cyber frauds that exploit technology like AI to create convincing but fraudulent schemes. Investors are advised to exercise caution, especially when approached with investment opportunities promising unrealistic returns or involving unverified platforms.
