What is Trump Hotel Rental app scam? 200 Karnataka residents lose over ₹2 crore in AI-backed fraud

In a sophisticated digital scam spanning several districts of Karnataka, over 200 people have allegedly been defrauded of nearly ₹2 crore through a bogus mobile application named Trump Hotel Rental. The app, which falsely used AI-generated images of US President Donald Trump to appear credible, promised exorbitant short-term returns under the guise of a luxury hotel investment platform.

According to a Times of India report and corroborated by multiple police complaints, the now-defunct app lured users by projecting itself as a high-profile hotel rental venture, exploiting Trump’s likeness to gain trust and legitimacy. The platform gained momentum via targeted social media advertisements, particularly across regions such as Bengaluru, Tumakuru, Mangaluru, Haveri, Hubballi, Dharwad, Kalaburagi, Shivamogga, Ballari, and Bidar.

Speaking to India Today, Haveri Superintendent of Police Anshukumar revealed that the scam followed a pyramid-style scheme. “By initially offering modest returns, they won over users’ confidence, then promised inflated returns at higher investment levels, before vanishing without a trace,” he said.

The app required users to pay a nominal registration fee, typically around ₹1,500. In return, some were paid initial amounts— ₹500 or small daily sums like ₹30—to encourage further investment. Once users’ dashboards reflected a balance of ₹300, withdrawals were permitted, further convincing victims of the scheme’s legitimacy. However, as users invested larger sums, often reaching lakhs, the app stopped functioning and the promoters disappeared.

One Bengaluru-based lawyer, in his complaint, stated that he had invested ₹6 lakh over a four-month period. “They even demanded taxes on the so-called earnings before going silent,” he added.

According to the TOI report, the fraudulent operation was not limited to fake investments. Several users were assigned bogus ‘work-from-home’ jobs such as drafting company profiles, with inflated earnings reflected on their dashboards—another ploy to entice deeper engagement and financial input.

As of now, over 15 formal complaints have been registered in Haveri district alone. However, police believe the actual number of victims could be significantly higher. SR Ganachari, Inspector at the Cybercrime, Economic Offences and Narcotics (CEN) unit, confirmed that investigations are underway, with officers analysing digital evidence to track the perpetrators. The app and its related online infrastructure have since been dismantled.

Authorities have cautioned the public to remain vigilant, warning that similar scams could re-emerge under different branding.