IPO scam alert: Elderly retiree in Hyderabad loses Rs 22.5 lakh to fake Sharekhan agents

Hyderabad: A 73-year-old retired employee from Hyderabad fell victim to an elaborate stock market scam, losing Rs 22.5 lakh to fraudsters who posed as representatives of Sharekhan, a well-known stock investing company. The scam involved fraudulent IPO investments and a fake trading platform.

Two days ago, the victim received a message from an unknown number claiming to be from the chief investment officer (CIO) of Sharekhan. The fraudster created a trading account for the victim and convinced him to invest in IPOs promising high returns.

Bogus IPO investments on fake website sharekhanedge.com

The victim was first advised to invest Rs 50,000 in the IPO of Denta Water and Infra Solutions Limited, purchasing 400 shares. The money was transferred from the victim’s HDFC bank account to a fraudulent account. The victim was then allocated shares and later sold them at a loss through the fake website www.sharekhanedge.com.

Following this, the fraudster persuaded the victim to invest Rs 1,00,000 in GB Logistics Commerce Limited, purchasing 4,000 shares. Later, the victim was allotted shares in Dr Agarwal Health Care Limited (30,2840 shares) for which he paid Rs 21 lakh.

On the fraudulent trading app, the total IPO allocation showed Rs 22.5 lakh as the principal amount, along with the supposed profits. However, when the victim attempted to withdraw funds, the fraudster demanded an additional payment, claiming that 35 per cent of the profit had to be paid before withdrawal.

Victim files complaint

The victim grew suspicious when he was repeatedly asked to make further payments. Realising the scam, he immediately approached the authorities and filed a complaint, seeking assistance in recovering his lost money.

Cybercrime advisory

Authorities warn investors to remain cautious of stock market scams operating through fake websites, social media groups, and fraudulent messages.

Here are some warnings for investors:

Beware of fake social media groups: Scammers operate through Telegram, WhatsApp, X (formerly Twitter), Instagram and Facebook, promising high returns.

Avoid believing fake profit screenshots: Scammers often share doctored profit images to lure victims.

Use SEBI-approved platforms: Always invest through the Securities and Exchange Board of India (SEBI)-registered platforms and financial advisors.

Small credit tactics: Fraudsters may deposit small amounts into a victim’s account to gain trust before requesting larger investments.

How to report cyber fraud

Dial 1930 or visit cybercrime.gov.in to report fraud. For immediate assistance, call or WhatsApp at 8712665171. You can also visit your nearest police station to file a complaint.

Authorities urge the public to remain vigilant and verify investment sources before transferring money.