Hyderabad man falls victim to cyber fraud in stock market scam

Hyderabad: A 41-year-old male private employee from Hyderabad was deceived by a cyber fraud scheme involving the stock market. The victim was first added to a WhatsApp group named the “Stock Market Group,” which initially provided legitimate stock market tips and education. The group, known as the “Investment Alliance Group,” later revealed its fraudulent nature.
The stock recommendations and market education initially seemed accurate, with many tips reaching their targets. The group also provided advice on the US stock market, where the scammers operated. They claimed to use QIB (Qualified Institutional Buyer) buying to influence stock prices, especially during the early morning window of 9:00 to 9:15 a.m. Fake testimonials and manipulated chat interactions further misled participants.
The fraudsters convinced the victim to open an “LSV Asset Management account,” using fake certificates that purportedly validated their SEBI (Securities and Exchange Board of India) registration. Although the victim was hesitant due to the unclear transaction system, they were eventually enticed by promises of guaranteed profits through “IPO Technologies Pvt Ltd.”
The victim invested in an IPO allocation and was allotted approximately 3,800 shares. On the listing day, the stock price surged by 285% during the 9:00 to 9:15 a.m. window. The victim’s position was squared immediately, showing a balance of over 29 lakhs. However, when attempting to withdraw funds, the scammers claimed the money would be available within 24 hours but later demanded additional payments to release the funds.
Realising the scam, the victim raised an alarm, leading to his removal from the WhatsApp group. He has since filed a complaint and is seeking appropriate legal action.
Public Advisory:
Fraudsters are increasingly targeting victims through various online social media platforms such as Telegram, WhatsApp, X (formerly Twitter), Instagram, and Facebook, advertising fake trading apps and websites. These schemes are fraudulent and lack SEBI’s endorsement. Always consult a SEBI-registered financial advisor before making any investments.
Fraudsters often offer fake profit screenshots and small initial gains to build trust before exploiting victims for larger sums. Be cautious and skeptical of promises of high returns.
Report cybercrime fraud, immediately by dialing 1930 or visit https://cybercrime.gov.in.
For emergencies, contact via WhatsApp at 8712665171.