A 75-year-old man from Udupi has lost ₹14.35 lakh in an online investment scam after fraudsters allegedly lured him onto a fake stock-trading platform and later pressured him into paying for shares in an IPO he had never applied for.
The victim, identified as Ramesh Shetty, first encountered the scheme after clicking a social-media link on July 29.
Police say he was given a user ID described as a “High Network Investore” account and encouraged to begin trading on the platform.
FCRF Launches CP-FRM to Build India’s Next Generation of Fraud Risk Professionals
Small Initial Profit Built Trust
Shetty initially deposited ₹40,000.
The platform then showed him a 5% return, creating the impression that the investment was profitable.
Encouraged by the displayed gains, he continued investing.
On August 18, he transferred another ₹80,000 and ₹50,000 and placed trades worth ₹1.25 lakh.
Police say the fraudsters repeatedly pushed him to deposit larger amounts over the following weeks.
The early profit was important because fake investment platforms often use small apparent gains to build confidence before demanding much larger payments.
The numbers shown on such platforms may have no connection to real market activity.
Victim Told He Had Been Allotted IPO Shares
The fraud escalated on September 1.
Shetty received a message claiming that 3,400 shares of ESDS Software Solution Ltd had been allotted to him at ₹272 per share.
The supposed allotment was valued at ₹9,24,800.
Shetty told the operators that he had never applied for the IPO and did not have enough money to make the payment.
He asked them to cancel the allotment.
Police say the fraudsters refused and pressured him to pay the entire amount.
Man Took Loans to Make ₹9.24 Lakh Payment
Under pressure, Shetty allegedly borrowed money and transferred ₹9,24,800 to meet the demand.
This is one of the most damaging stages of many fake trading scams.
By this point, the victim may believe a large amount of money is already locked inside the platform.
Fraudsters then create a new reason why another payment must be made before the investment can be recovered.
In this case, the pressure shifted from the alleged IPO allotment to a supposed withdrawal condition.
Another ₹5.10 Lakh Demanded Before Withdrawal
When Shetty tried to withdraw his funds, police say the transaction was blocked.
The operators allegedly demanded another ₹5,10,724, claiming it was a mandatory 10% profit fee that had to be paid before withdrawal could be processed.
Hoping to recover the money already deposited, Shetty made the additional payment.
The fraudsters then stopped responding.
Their phones were switched off and messages sent through WhatsApp went unanswered.
Shetty eventually realised that the trading operation was fraudulent.
Total Loss Reaches ₹14.35 Lakh
Police put the victim’s total loss at ₹14,35,724.
A case has been registered at Udupi Town Police Station under Section 66 of the Information Technology Act and Section 318(4) of the Bharatiya Nyaya Sanhita.
The investigation is continuing.
Police have not announced any arrests or recovery of funds so far.
They have also not publicly identified the operators of the fake platform or disclosed the bank accounts into which the money was transferred.
Fake Trading Platforms Use Manufactured Profits
The case follows a familiar pattern seen in investment frauds across India.
Victims are approached through social media, WhatsApp groups or online advertisements and shown apparently successful trades.
Some may even receive a small initial return.
Once trust is established, the investment demands become larger.
When the victim asks to withdraw money, the platform may suddenly demand taxes, commission, profit-sharing charges or additional deposits.
The balance displayed on the screen may look substantial, but the money may never have been invested in the stock market at all.
What this means for you
Never pay additional “tax”, “profit fee” or “unlocking charge” to withdraw money from an unfamiliar trading platform. If an investment platform claims you have been allotted IPO shares you never applied for, stop immediately and verify the transaction through a SEBI-registered broker or official exchange records.
Follow for daily updates on cybercrime, corporate fraud, DFIR, hacking, investigations, and digital forensics
