Man loses ₹72 lakh in fake stock trading and IPO scam

A 59-year-old resident of Secunderabad lost approximately ₹72 lakh after being cheated in an online investment fraud involving fake stock trading, IPO allotments and a WhatsApp based investment group, cybercrime police said.

According to the complaint, the victim came across a Facebook post on March 25, 2025, which claimed to be associated with a reputed stock brokerage firm. The post redirected him to a WhatsApp group that projected itself as an official investment and strategy forum. The group administrators and so called experts impersonated senior executives and market professionals, sharing market discussions, stock tips and IPO strategies to gain his confidence.

Police said that the victim was persuaded to enrol for a prime trading account after submitting KYC documents. Initially, small investments reflected artificial profits on a dashboard, encouraging him to invest larger sums over time. He was subsequently pressured to deposit additional amounts on various pretexts, including assured IPO allotments, alleged credit score issues and restrictive withdrawal conditions, leading to financial strain and mental stress.

When the victim attempted to withdraw the displayed high asset value, he was asked to pay heavy commissions and VIP membership charges, citing purported regulatory requirements. Despite making multiple deposits under pressure and repeated assurances of an imminent payout, the WhatsApp group later became inactive and the accused stopped responding. Realising that he had been cheated, the victim approached the cybercrime authorities.