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