Karnataka investors duped of Rs 2 crore in AI-driven 'Trump Hotel Rental' scam

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Over 200 people across Karnataka have filed complaints with cybercrime authorities after being swindled out of nearly Rs 2 crore through a fake mobile app named Trump Hotel Rental, which exploited AI-generated visuals of former US President Donald Trump to lure unsuspecting investors, as per a TOI report.

According to multiple police reports and victims’ accounts, the now-defunct Trump app promised massive short-term returns - in some cases over 100% - under the guise of a high-profile hotel rental and investment platform. The app is alleged to have duped over 800 people in districts including Bengaluru, Tumakuru, Mangaluru, Haveri, Hubballi, Dharwad, Kalaburagi, Shivamogga, Ballari and Bidar.

Haveri Superintendent of Police Anshukumar told India Today that the app gained traction through targeted advertisements on social media, promising users high returns in a short period.

The app operated on a pyramid-like model, initially collecting small registration fees — typically around Rs 1,500 — and paying out Rs 500 to gain the users' trust. “By offering small returns, they gain the user’s confidence, then promise higher returns at the next level and coax users into investing more, before disappearing,” the SP was quoted by India Today.

Several investors reported being paid small sums like Rs 30 daily, which could be withdrawn once the total hit Rs 300. One Bengaluru-based lawyer stated in his police complaint that he eventually ended up investing Rs 6 lakh between January and April this year. “They even asked for tax payments on earnings before vanishing,” he said, as per TOI.

The scam extended beyond just investment returns. Victims were also offered fake work-from-home assignments — such as writing company profiles — with a dashboard showing inflated ‘earnings’. Police say these were designed to bait users into deeper investment, as per India Today.

Despite over 15 cases already registered in Haveri alone, police suspect many more victims have not yet come forward, SR Ganachari, Inspector of the Cybercrime, Economic Offences and Narcotics (CEN) unit, told TOI.

Investigators are now analysing digital footprints to trace the perpetrators. The app and all associated digital assets have since been taken down, but authorities warn that similar scams could reappear under different guises. No arrests have been made yet and the probe is ongoing across multiple jurisdictions.