Cyber fraudsters have cheated a businessman from Shamli of ₹2.19 crore by luring him with promises of IPO allotment and exceptionally high returns in the stock market. Over a period of nearly one month, the victim was persuaded to transfer money through RTGS into multiple bank accounts. The fraud came to light after no shares were allotted and all communication from the alleged investment handlers abruptly stopped. Following a formal complaint, a case has been registered at the cyber crime police station, and an investigation is underway.
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Trap laid through fake WhatsApp investment groups
According to the complaint, the businessman was added to a stock market–related WhatsApp group in November 2025 by an unknown individual. The group regularly shared stock tips, profit screenshots and claims of consistent gains, creating an impression of legitimacy and success.
After a few days, the group administrator promoted a so-called premium investment group, claiming it could deliver returns of up to 600 per cent annually. The victim was gradually encouraged to move into higher-value investment categories, each presented as an exclusive opportunity with limited access.
Initially shown smaller investment brackets to build confidence, the businessman was later added to a high-value group that allegedly specialised in IPO allotments and pre-listing gains. It was at this stage that large-scale fund transfers were initiated.
Crores transferred in the name of IPO allotment
Investigators found that between December 2025 and January 2026, the fraudsters systematically extracted money from the victim under the pretext of applying for IPOs. During this period, ₹2 crore 16.50 lakh was transferred from the businessman’s bank account to several different accounts via RTGS.
The victim stated that the final payment was made in the second week of January. Despite repeated assurances, no IPO shares were credited to his demat account. Soon after, the WhatsApp groups became inactive and the administrators stopped responding, confirming that he had been defrauded.
Emerging cyber fraud pattern
Cybercrime researchers note that IPO-based scams are becoming increasingly common across the country. According to the Future Crime Research Foundation (FCRF), fraudsters are exploiting public interest in stock market listings by creating fake digital communities that mimic legitimate investment forums.
These scams typically rely on social engineering tactics—using professional language, fabricated success stories and fake testimonials—to gain the trust of victims before demanding large financial transfers.
Expert warning
Former IPS officer and renowned cybercrime expert Prof. Triveni Singh warned that IPO-related frauds follow a predictable but dangerous pattern. “Fraudsters first create a sense of credibility through small claims or a controlled environment. Once the victim is psychologically convinced, large sums are transferred under the guise of IPO allotment, pre-listing advantages or exclusive access,” he said.
He cautioned that any IPO investment opportunity offered outside SEBI-registered platforms should be treated as highly suspicious. “No genuine IPO allotment is done through WhatsApp or Telegram groups. Promises of guaranteed or extraordinary returns are a clear red flag,” Prof. Singh added.
Bank trails and digital evidence under scrutiny
Cybercrime investigators are now examining the bank accounts used in the transactions, along with digital trails, phone numbers and online communication records. Preliminary findings suggest the involvement of a well-organised cyber fraud network, potentially operating across multiple states and targeting investors through similar digital methods.
Authorities believe that the money may have been layered through several accounts to evade detection, a tactic commonly used in organised cyber financial crimes.
Call for investor vigilance
Cyber experts and regulatory agencies have once again urged investors to remain cautious of unknown investment groups, unrealistic return claims and unsolicited financial advice. Verifying the authenticity of IPOs and investment platforms through official sources is essential before transferring any funds.
This case highlights how rapidly evolving digital fraud techniques are keeping pace with the growing popularity of online investing—making awareness and due diligence the most effective tools for protection.
About the author – Ayesha Aayat is a law student and contributor covering cybercrime, online frauds, and digital safety concerns. Her writing aims to raise awareness about evolving cyber threats and legal responses.
