Hyderabad seems to be one of the new emerging hotspots for online fraud in India, with frequent reports of cyber fraud where citizens lose huge amounts of money to sophisticated scammers. In the latest case, a businessman from the city fell prey to an elaborate fake initial public offering (IPO) scam, resulting in a loss of Rs 5.9 crore. The incident underlines the growing threat of online fraud in the city, as scammers continue to lure unsuspecting victims with tempting but fraudulent offers.

In this scam, fraudsters took advantage of the growing interest in investing in the stock market and devised a lucrative scheme to dupe unsuspecting people. In this particular case reported by TOI, the scam began when the victim, a resident of Kukatpally, received a WhatsApp message promoting the alleged “Goldman Sachs Business School” for block trading and preferential IPO access. The message caught the victim’s attention as it contained the name of a renowned financial institution. However, soon after the message, the victim was also contacted by a woman who introduced herself as the assistant to the managing director of Goldman Sachs. She introduced a lucrative investment opportunity in the Indian stock market through institutional accounts to build credibility of the offer.

When the victim sought more details, the scammers convinced him to register for the scheme through a Google form and download a trading app called ‘GSIN’. The app was allegedly linked to Goldman Sachs and offered exclusive access to IPOs and block trading opportunities. Convinced of the legitimacy of the offer, the victim started transferring funds from his personal savings accounts to various bank accounts provided by the scammers. Between January 30 and February 22, he invested a total of Rs 5.9 crore in multiple transactions.

However, the victim grew suspicious when he tried to withdraw his money. On February 22, the woman, who claimed to be the personal assistant (PA) of the managing director, instructed the victim to sell all his holdings. When the victim enquired about the withdrawal process, he was told that he would have to pay 20 per cent of the profits, or Rs 2.8 crore, to access his money. This made the victim suspicious and he requested that the 20 per cent be withheld and the rest be released. However, the scammers insisted on paying at least 10 per cent of the profits (Rs 1.4 crore) for the withdrawal.

Reddy realised he had been cheated, so he refused to pay the extra amount and immediately lodged a police complaint. Investigation revealed that the money he had invested had been siphoned off into 11 different bank accounts, making it difficult to trace and recover the money.

This is yet another case of cyber scam, a stark reminder of the growing sophistication of cyber frauds targeting investors. To protect yourself from such scams, it is important to exercise caution and verify the authenticity of any investment opportunity, especially those that promise high returns. Most importantly, never transfer money to individuals you have just met online.