Bengaluru Doctor Swindled of Rs 1.16 Crore in Fake IPO Scam

Bengaluru: In yet another case of cyber fraud, a Bengaluru-based doctor was allegedly duped to the tune of Rs 1.16 crore on the pretext of investing in initial public offerings (IPOs) and other stocks.

The victim, a resident of Srinivasanagar, filed a complaint with the South CEN police after realizing he had been deceived between July 18 and September 19.

According to his complaint, while browsing Facebook, the doctor encountered an advertisement for IIFL trading. After clicking the link, he joined a WhatsApp group where discussions about trading and IPOs sparked his interest in investing. Eager to learn, he decided to invest Rs 1.20 lakh on July 22. His investment initially yielded impressive returns, growing to Rs 3.63 lakh by August 12.

As per his complaint, while browsing Facebook, the doctor encountered an advertisement for IIFL trading. After clicking the link, he joined a WhatsApp group where discussions about trading and IPOs sparked his interest in investing. Eager to learn, he decided to invest Rs 1.20 lakh on July 22. His investment initially yielded impressive returns, growing to Rs 3.63 lakh by August 12.

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According to reports from the Indian Express, the doctor stated that unbeknownst to him, his initial success was part of a larger scam. The financial advisor in the WhatsApp group later suggested he invest in the Indian Phosphate Limited IPO, scheduled for August 26. Trusting this advice, the doctor invested a substantial Rs 1.20 crore. However, when he attempted to withdraw his earnings, he discovered he could not access his funds. It soon became clear that he had fallen victim to a sophisticated cyber fraud.

In a state of shock, the doctor contacted the police helpline and filed a formal complaint. The South CEN police registered a case under Section 66(d) of the Information Technology Act (cheating by personation) and Sections 318(4) (cheating and dishonestly inducing the delivery of property) and 319(2) (cheating by personation) of the Bharatiya Nyaya Sanhita (BNS). Authorities are now investigating the case to bring the perpetrators to justice.

Authorities reported that he is one of many victims of a larger scheme operated by fraudsters advertising on social media. Investigators believe that most participants in the WhatsApp group were scammers posing as genuine investors to deceive others into making further investments.  

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