Bengaluru doctor falls for IPO fraud, loses Rs 1.16 crore

A few days after joining a WhatsApp group, the doctor began following others involved in trading. The group members started discussing block trading and IPOs, and the doctor said based on their advice, he invested Rs 1.20 lakh on July 22. His investment yielded significant returns, amounting to Rs 3.63 lakh by August 12, he told the police.

The doctor said he was unaware that he was falling for a bigger scam because he could also withdraw the money. Then, in the group, the financial advisor sent a link to invest in Indian Phosphate Limited IPO, which was scheduled for August 26, he said. Trusting the fraudsters, the doctor invested Rs 1.20 crore, and it showed that he had received a huge return. But the doctor said he was not able to withdraw the money. After discovering that he had fallen prey to a cyber fraud, he informed the police on the helpline and filed the complaint.

A police officer said there are multiple fraudsters who advertise on social media, and the doctor is one of the many who fell victim. Most people in the WhatsApp group were believed to be fraudsters pretending to be customers to deceive others into making profits. It was suspected that the cyber criminals were aware of the doctor’s financial status, which is why they initially paid him large returns on his investment to entice him further, the police said.

The police added that he was lured into block trading, where they would claim to block a transaction in a security at a privately negotiated price executed outside of the open market, promising huge returns.

The South CEN police registered a case under sections 66(d) (cheating by personation) of the Information Technology Act and sections 318(4) (cheating and dishonestly inducing the delivery of property) and 319(2) (cheating by personation) of Bharatiya Nyaya Sanhita (BNS).

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