Ahmedabad man loses ₹7 lakh in fake stock trading and IPO scam

A 39-year-old purchase manager from Narol has alleged that he was cheated of ₹6.95 lakh by fraudsters who lured him into a fake stock trading and IPO investment scheme through a WhatsApp group, police said.

According to Cyber Cell of Crime branch, Kaushalendra Yadav was added to a WhatsApp group titled 'M3 Technical Analysis Study Group' on August 12. The group was allegedly operated by an individual identifying himself as 'Jass Singh, Stock Investor'.

Police said the accused claimed to have worked for over 15 years with Franklin Templeton in the United States and projected himself as an expert in stock market trading. He also told group members that he was planning to publish a book titled 'Stock Market Winners' and began sharing trading tips and investment strategies.

“The accused created an impression of credibility by regularly posting stock market insights and showing purported profits earned by other group members,” a cyber crime official said.

Investigators said that after gaining the complainant’s trust, the accused introduced him to a purported trading platform named 'Cerber INV' through another individual posing as a client services manager named Riya. The complainant was asked to register on the platform and deposit money for trading in equities and initial public offerings (IPOs).

Between September 22 and 29, Yadav transferred money in multiple instalments to a bank account provided by the accused, registered in the name of a firm at a Bank of Baroda branch in Jharkhand. The total amount transferred stood at just ₹6.95 lakh.

Police said the application displayed notional profits to encourage further investment. The accused later claimed that additional funds were required to secure IPO allotments and to enable withdrawal of profits, prompting the complainant to make further payments.

However, when Yadav attempted to withdraw his money, the accused allegedly refused and continued to demand additional deposits under various pretexts. Suspecting fraud, he contacted the National Cybercrime Helpline (1930) on September 30, and subsequently filed a formal complaint.

A case has been registered against unknown persons, including the administrator of the WhatsApp group, the individual posing as a client services manager and the holders of the bank accounts used in the transactions.

Officials said digital evidence, including WhatsApp chats, transaction records and application data, is being analysed to trace the accused and further investigation is on. Authorities have urged citizens to remain vigilant against unsolicited investment offers on messaging platforms and to verify the authenticity of trading platforms before transferring funds.