Colour Trading App, the Scam Behind Online Betting Games

In recent years, the Colour Trading App trend has exploded across India, attracting thousands of users looking to make quick profits through simple colour-based predictions. These apps claim to offer guaranteed returns for correctly predicting colours or combinations of colours. 

However, beneath the flashy interface and easy gameplay lies a dark reality, many of these apps are elaborate scams designed to steal users’ money. Read this article to find out how colour trading apps are scamming users!

What is Colour Trading App?

Colour Trading App, often disguised as a harmless gaming or investment platform, is essentially an online betting system. 

Users place bets by choosing colours such as red, green, or blue, and if their prediction matches the outcome shown on the app, they supposedly earn a fixed profit, often advertised as 10% or more in returns per bet.

While the concept sounds straightforward and risk-free, investigators have discovered that these apps are not just unregulated betting platforms, they are scam operations that lure victims with initial small wins before wiping out their funds completely.

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How the Colour Trading App Scam Works

The scam typically begins with a user receiving a message, social media ad, or WhatsApp invite promising easy income from “colour trading.” Once they click the link, they are introduced to an agent or “mentor” who guides them on how to play.

Here’s a step-by-step breakdown of the scam:

1. The Hook: Initial Wins

The victim is encouraged to start with a small amount, for example, ₹10,000. At first, they might actually “win” and see their balance double. This is designed to build trust and make them believe the app is legitimate.

2. The Trap: Bigger Bets

Encouraged by early success, users are persuaded to invest more, ₹30,000, then ₹50,000, and eventually even ₹1 lakh or more. The app continues to show fake “profits” on their digital wallet to keep them playing.

3. The Fall: Withdrawal Blocked

When the user tries to withdraw their winnings, the app suddenly demands an additional “security deposit” or “activation fee”, typically another ₹50,000 or more. Once the victim transfers the amount, communication stops, and the funds disappear.

4. The Vanishing Act

Scammers delete the communication channels, deactivate accounts, or shut down the website entirely. Victims are left without access to their wallets or any means of recovering their lost funds.

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Real-Life Victims of Colour Trading App Scams

In one case, Rafiq, an IT employee from Bengaluru, lost ₹5.5 lakh after falling into the trap. He initially won small bets, but when he tried to withdraw his supposed ₹7.67 lakh winnings, the app demanded another ₹50,000 deposit, which he paid. His wallet was emptied, and the scammers vanished.

Another victim, Balaji from Chennai, was introduced to a colour trading app through a text message. He lost ₹1.73 lakh after repeatedly placing bets, hoping to recover his earlier losses. When he went to the police, he was mocked and told he should “lend money” instead of investing in scams.

Cyber experts like Venkatesh Vanjaku, who investigates online frauds, have reported over 2,000 colour prediction websites operating with identical layouts and Chinese-linked IP addresses. 

In 2020, the Hyderabad police uncovered a ₹1,600 crore colour trading scam involving both Indian and Chinese nationals, with laundered money sent to overseas accounts in Singapore.

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Why Colour Trading Apps are Dangerous

So, here’s why Colour Trading Apps are dangerous:

1. Not Listed on Official App Stores

You won’t find legitimate colour trading apps on the Google Play Store or Apple App Store because they violate policies related to gambling and financial fraud.

2. Linked to Money Laundering

Authorities found that these scams often serve as money-laundering fronts, transferring funds abroad through shell accounts and UPI transactions.

3. No Legal Protection for Victims

Because online betting is illegal in many Indian states, victims are often reluctant to report their cases, fearing legal trouble. Even when they do, local police are rarely trained to handle complex cybercrime investigations.

4. Exploits Psychological Traps

Scammers use psychological manipulation, small wins, time limits, and urgency, to make victims invest more, similar to tactics used in casino gambling.

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How to Stay Safe from Colour Trading App Scams

And here’s how to stay safe from Colour Trading App scams:

1. Avoid Links Shared on Social Media or WhatsApp: If someone sends you a link promising easy money from colour prediction or trading games, it’s almost certainly a scam.

2. Check for Legitimacy: Look for genuine company details, registration numbers, and verified reviews. Most scam apps operate anonymously without contact information.

3. Never Pay for Withdrawals or Verification: Any app asking for additional payments to release your “earnings” is a red flag.

4. Report Suspicious Apps: Use the National Cybercrime Reporting Portal to report frauds. Quick reporting increases the chances of tracking the scammers.

5. Educate Others: Spread awareness among friends and family. Many victims are lured simply because they see others promoting these apps online.

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Conclusion

The rise of Colour Trading Apps is a sobering reminder that easy-money schemes often come at a high price. These apps disguise themselves as investment opportunities but operate as coordinated cyber scams. 

The lack of regulation and public awareness allows scammers to thrive, targeting thousands of unsuspecting users across India.

If you come across a platform promising guaranteed profits through “colour prediction” or “colour trading,” steer clear, it’s not a business, it’s a trap. Always research before investing, and never trust strangers offering shortcuts to wealth.

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FAQ

What is a Colour Trading App?

A Colour Trading App is an online betting platform that claims users can earn money by predicting colours. In reality, most are scams designed to steal money.

Are Colour Trading Apps legal in India?

No. Online betting and gambling are illegal in most Indian states, making these apps unlawful and unsafe.

How can I identify a scam Colour Trading App?

If the app isn’t on official app stores, demands deposits to withdraw winnings, or operates anonymously, it’s likely a scam.

What should I do if I’m scammed?

Immediately report the incident on the National Cybercrime Reporting Portal and contact your bank to block further transactions.

Why are such scams increasing?

With more people using smartphones and social media, scammers exploit digital platforms to target users looking for fast income opportunities.