It was Saturday evening, I got one message on WhatsApp with the details of an upcoming IPO. Since I was looking for an investment option for a long time, I opened the link provided.
It was the link to an app. But then I kept my phone aside. A few minutes later I got another message that the IPO is one of the top emerging companies of India and can provide a huge return on investment.
I then Google that company and found the details that validate the message.
Then I opened that app link again, filled in all the required details and completed the eKYC process. There was an option in the app to add funds, when I clicked on it, the bank details appeared.
The minimum amount required for IPO was ₹2 lakhs. I transferred the amount. After a few days, the app displayed a return of ₹10,00,000 on my investment. To check I placed a request to withdraw ₹50,000 and it got credited as well.
Later after a few days, again I received a message of another IPO. This time the minimum amount was ₹5,00,000. To earn a high return I deposited the fund in the bank account.
Hurray! I won again and this time my 5,00,000 capital grew to ₹12,00,000. The total return on investment was ₹22,00,000. I went crazy.
And this time placed a request to withdraw ₹15,00,000. But they cancelled my request and asked me to pay 30% tax on my returns which was around ₹6,60,000.
I told them that I had no money and they can deduct it from my capital and credit the balance in my account. However, they denied and didn’t let me withdraw my capital. Later they blocked me.
On investigating further, I realised that it was a fake app and I had been scammed.
This is a story of Amit, a dentist, who lost his capital in an IPO scam. However, this story might help you in understanding what an IPO scam is but let’s dig a little deeper to understand it and also to learn how to avoid and report such trading scams in India.
How IPO Scams Work?
Another format of scam, growing significantly in India, where the scammer convinces the user to download fake trading apps and extract all the personal details from there.
Later he promised high returns on IPO investment and asked a person to transfer funds in their bank account to make investment. Not aware of how an IPO works in India, the victim follows the scammer’s plan and ends up losing hard-earned money.
This scam starts from WhatsApp where scammers lure victims by showing high returns and fake success screenshots.
On gaining trust by some initial investment and crediting profits in the victim’s account, they then ask for a huge amount and ultimately fled away with all the capital.
How to Report IPO Scams?
Although there are ways to protect yourself from IPO scams, if you are caught in such fraud then the only way to recover your losses is to report the case to Cyber Crime.
To know how to file a complaint in Cyber Crime, follow the steps below:
- Visit the cyber crime portal.
- Register by adding your details and then login using credentials.
- Click on ‘Lodge a Complaint’.
- Now add incident details.
- Upload supporting documents.
- In the next form add suspect details followed by victim details.
- Submit the complaint and note the acknowledgement number to track status.
How to Protect Yourself from IPO Scams?
Now the first rule to protect yourself from IPO scams is to never respond to Unknown WhatsApp messages. Other than this, follow the tips below to stay away from such scams:
- Do a Proper Research: IPO are issued in stock market after getting an approval from SEBI. Make sure you research the company details thoroughly before investing.
- Beware of Unrealistic Promises: These scammers lure people by showing them fake PnLs and promising high returns on investment. Protect yourself from falling for such tactics.
- Never Download any App using Links: Trading apps are available on Play Store so avoid downloading the app from any other website or platform.
- Check SEBI Registration: In case someone provides you investment advice then make sure you check SEBI registration of that person or a company.
Conclusion
Growing digitization has made our life simpler but has also made it easier for scammers to use their tactics to scam people using different means.
In such cases, the only way to stay protected is to stay alert, and to research thoroughly before investing in any schemes.
In case you have been scammed in any such scams, then fill in your details in the form and a quick callback will be arranged to assist you with filing a complaint and further process.
