Upper circuit stocks, hot IPOs: How a Hyderabad stock trader lost Rs 3 crore to an investment scam

A 48-year-old individual engaged in stock trading from Gachibowli, Hyderabad, fell victim to a significant investment fraud totaling Rs 3.37 crore. The scheme commenced with a deceptive invitation via WhatsApp to join a trading group named 'International Stock Trading Account,' purporting to facilitate transactions involving upper circuit stocks. Initially enticed by the promise of financial gain, he made an initial investment of 60 lakh in a single day, believing in the legitimacy of the opportunity.

Upon responding to the WhatsApp message in March, he was instructed to download a trading application, and individuals masquerading as executives of the trading firm facilitated the opening of an account in his name for trading purposes. Subsequently, following two transactions wherein he transferred 30 lakh rupees each, the fraudsters spoke about upper circuit stocks and hot IPOs, enticing him with promises of substantial profits. Driven by the allure of wealth, he continued to funnel funds into the designated accounts as directed by the perpetrators.

Initially, modest returns of 1,000 rupees were received on the second day following his initial investment, followed by consistent returns over the subsequent two weeks, prompting him to increase his investment stakes. Despite his initial success, the mirage of profitability evaporated when he attempted to withdraw funds, only to be confronted with a demand for Rs 1.71 crore in taxes. Prompted by this alarming development, he filed a complaint, leading to the initiation of an investigation by the Telangana State Cyber Security Bureau.


In a separate incident, a woman stock trader from Faridabad fell victim to a scam, losing Rs 7.6 crore under the guise of investing in stocks via Facebook links. Law enforcement reported the arrest of 16 individuals across various cities, including Bengaluru, Jaipur, Jodhpur, Bikaner, Delhi, Lucknow, and Gurgaon, in connection to the case.

According the complaint, the woman, with two years of stock market experience, received a Facebook link promising profitable returns on January 4. Following the link led her to a WhatsApp group, where members purportedly reaped substantial profits, motivating her to invest her own funds.

Subsequently, she was added to another group and instructed to deposit funds through customer service. Yielding to the fraudsters' directives, she transferred varying sums to different bank accounts.

She continued depositing funds, ultimately transferring Rs 7.6 crore. Realizing the deception only upon seeking returns, she filed a complaint through the cyber portal. Amit Kumar, overseeing the cyber police station, told TOI that the scamsters lured victims into stock market investments and later converted funds into cryptocurrency and channelled them to China.