A 47-year-old Assistant Section Officer working at the Telangana Secretariat in Hyderabad has fallen victim to a sophisticated cyber fraud, losing over ₹4.2 million in a fake online initial public offering (IPO) and stock trading scheme. The fraud originated from a promotional advertisement on Instagram that offered lucrative stock market tips and high-return investment opportunities. After clicking the social media link, the victim was added to a WhatsApp group named “85 – Exclusive Group,” where administrators posing as seasoned financial market experts routinely posted stock market tips and screenshots of apparent trading successes to build credibility.
The cybercriminals gradually established trust before directing the official to join a secondary WhatsApp group where self-proclaimed customer service representatives managed transactions. The victim was instructed to transfer funds across multiple designated bank accounts under the pretext of subscribing to high-yield IPO shares. To monitor her growing portfolio, the victim downloaded a fraudulent mobile trading application titled “UP QiB Pro.” The application displayed manipulated figures showing substantial fictitious profits, encouraging her to continuously deposit larger sums of money.
Unauthorized IPO Application and Account Freezing Escalation
The cyber fraud intensified during the purported IPO offering of Kusumgar Limited. Although the Assistant Section Officer explicitly communicated that she did not wish to participate in the IPO, the scammers claimed an application worth approximately ₹11.2 crore had already been filed in her name without her authorization. The fraudsters asserted that her trading wallet held around ₹8.5 million and claimed the firm had covered the remaining balance on her behalf. They subsequently demanded an immediate deposit of ₹2.6 million to settle the transaction and finalize the allotment.
When the official refused to deposit additional funds and instead requested a complete refund of her invested capital, the fraudsters immediately froze her trading account on the “UP QiB Pro” application. The action blocked her access to both her original ₹4.2 million investment and the fictitious profits displayed on the platform. Shortly afterward, the operators ceased all direct communication and ignored her calls, though the underlying WhatsApp groups remained active.
Legal Action and Expert Warnings on Digital Investment Frauds
Upon realizing she had been scammed, the victim reported the incident to the National Cyber Crime Reporting Portal before filing a formal complaint with the Hyderabad Cyber Crime Police. Authorities registered a case under Sections 66C and 66D of the Information Technology Act alongside relevant provisions of the Bharatiya Nyaya Sanhita. Law enforcement agencies are currently tracking the destination bank accounts, mobile numbers, and digital payment routes used by the cyber syndicate to execute the crime.
“Cybercriminals are increasingly exploiting social media advertisements, fake investment platforms, and coordinated messaging groups to manipulate unsuspecting investors. The profits shown on unverified trading apps are completely fabricated figures designed to coerce victims into sending more money. Investors should strictly trade through SEBI-registered intermediaries.” — Prof. Triveni Singh, Cyber Crime Expert and Former IPS Officer
Financial security experts advise citizens to immediately report blocked withdrawals or suspicious deposit demands to the national cybercrime helpline at 1930. The police investigation remains ongoing as authorities work to uncover the full network behind the fake investment platform.
