Two Hyderabadis fall for IPO scam, lose several crores

Hyderabad: Cyber crimes like criminal activities are on the rise in recent times and the victims are primarily educated people. Recently, two men lost over 10 crore after they fell into a trap disguised as initial public offerings (IPOs). The fraudsters laid out an elaborate plan and targetted the individuals in the name of reputed financial institutions like Goldman Sachs and IIFL Securities. 

As per the reports, one businessman named Gopu Venugopala Reddy from Kukatpally was cheated through a WhatsApp message asking him to join “Goldman Sachs Business School” WhatsApp group for block trading and preferential IPO access. 

Reddy approached the cyber crime police to file a complaint and said a woman claiming to be the personal assistant for the managing director of Goldman Sachs contacted him and guided him how to invest in the Indian stock market through institutional accounts. 

He further said as following the instructions he downloaded a trading app called ‘GSIN’ and credited money into various accounts to purchase shares in nine companies and to participate in IPOs of four companies. According to the FIR, Reddy had invested Rs. 5.9 crore into 11 different bank accounts. He further said he realised he was duped when one Sita, claiming to the PA of the managing director insisted on a minimum payment of 10 percent of profits amounting to Rs. 1.4 crore. 

Another victim of cyber fraud Konduri Hrushikesh, who is a software engineer from Kondapur reportedly lost Rs 5.2 crore. In his complaint, Hrushikesh explained that he joined WhatsApp group 'A117 IIFL SECURITIES Official Stock Community' on May 7 after he found out about the stock recommendations on Facebook. Ankur Kedia, an alleged chief investment officer (CIO) of IIFL Securities, was the admin of the WhatsApp group.

The techie said following their guidance, he joined their stockbroking application and he was made to apply for IPOs through 'Institutional buyers' as high net worth Individuals. Hrushikesh further said he credited Rs. 5.2 crore into the ‘regulatory accounts’ provided to him. And, his request was denied when he attempted to withdraw the money. He claimed that the customer care was not helpful and he realised he had been scammed when they demanded additional funds to process the withdrawal.