IPO Scam Hits Hyderabad involving a Never-Ending Scam Loop
“Hyderabad is being hit with an IPO scam on a very large scale concerning individuals who don’t have a clue how to deal with it.”
In what authorities describe as a sophisticated online initial public offering (IPO) investment scam, a 40-year-old man in Hyderabad lost ₹29 lakh. According to authorities, the case shows how scammers take advantage of digital platforms, establishing credibility through social engineering and reliable financial symbols before depleting victims’ assets.
An Increasing Trend of Online Fraud
A Yousufguda man was duped of ₹29 lakh through a scheme that guaranteed returns on initial public offerings, according to confirmation from Hyderabad’s cybercrime police on Saturday. The 40-year-old victim, whose identity has not been revealed, was initially contacted on Facebook.
Later on, he was added to a WhatsApp group that seemed legitimate, with over 200 members actively talking about investments. He was given bank accounts that were linked to companies that were purportedly registered with the Securities and Exchange Board of India (SEBI), which gave them an appearance of legitimacy.
Investigators think that a key component of how these frauds trick unwary investors is the employment of such regulatory organizations.
Building Trust With Falsified Profits
Police Officials
| According to police officials, scammers used an early strategy to boost the victim’s trust by letting him view fictitious profits on the platform. He was eventually convinced to make additional commitments, including shares valued at ₹25 lakh.
In a startling turn of events, authorities claimed that if he didn’t agree with their requests, the con artists threatened to transfer his money to charity. According to the authorities, this intimidation strategy delayed the deceit and deterred him from acting quickly. |
Until he tried to take his money out, the appearance of profitability persisted. The scammers then demanded ₹3.11 lakh, or 18 percent, before any transfers could be completed. Soon after, they intensified their demands and insisted on paying an extra 20% in taxes, further entangling the victim in debt.
A Wealthy Illusion That Never Came to Pass
The Hyderabad cybercrime squad claims that the victim was even presented with a fake ₹42,86,947 account balance. On the bogus app, the figure gave the appearance that he had not only repaid his investment but had increased it greatly. However, all attempts to withdraw money were turned down.
Continued Police Investigations
Since then, the victim has formally complained, and the Hyderabad cybercrime police have opened a case. Authorities have launched an inquiry, although they haven’t yet revealed the number of people or networks that could be implicated.
Authorities have emphasized that the case is still pending, highlighting the fraud’s complexity as well as the persistent susceptibility of digital investors in India’s growing online marketplaces.
About The Author
Suraj Koli is a content specialist in technical writing about cybersecurity & information security. He has written many amazing articles related to cybersecurity concepts, with the latest trends in cyber awareness and ethical hacking. Find out more about “Him.”
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