Fake 'Trump Hotel Rental' App Scams Over 800 Investors In Karnataka; Victims Lose Nearly Rs 2 Crore In AI-Driven Investment Fraud

Bengaluru: A massive investment scam using a fake app named Trump Hotel Rental has duped over 800 investors across Karnataka, with more than 200 filing complaints after collectively losing nearly Rs 2 crore.

The app, which used AI-generated videos and images of former US President Donald Trump to appear legitimate, has now been taken down. Authorities say the fraud operated for at least 5–6 months before being exposed.

AI-Backed Scam Promised Sky-High Returns

According to cybercrime officials, the now-defunct app lured users with fake promises of remote job opportunities and lucrative investment schemes, sometimes claiming over 100% returns in a short period. Users were shown a dashboard that displayed rising "earnings" with each completed task, typically clicking ads or submitting personal details. However, these displayed profits were entirely fabricated.

“Each completed task gave an illusion of growing wealth, but it was all fake,” SR Ganachari, Inspector of CEN (Cybercrime, Economic Offences, Narcotics), told The Times of India. Investigators revealed that the app also manipulated initial withdrawals, allowing users to cash out small amounts like Rs 300, only to demand larger investments later.

A lawyer from Karnataka who lost Rs 6 lakh between January and April said the scammers initially paid him Rs 30 daily, encouraging him to invest further. “Once I trusted the system, they kept asking for more investments and later requested taxes to release my returns but I never got my money back,” he told TOI.

Statewide Police Action Underway

So far, fifteen FIRs have been registered in Haveri district alone, with cases also surfacing in Bengaluru, Tumakuru, Mangaluru, Hubballi, Dharwad, Kalaburgi, Shivamogga, Ballari, and Bidar. Police have urged more victims to come forward as many have reportedly stayed silent due to embarrassment.

Authorities are tracking the digital footprint of the scam's organisers and coordinating with cybercrime experts to trace the flow of funds. Officials believe the number of affected investors may continue to rise as the investigation unfolds.

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