Deceptive Initial Public Offering leads to significant financial loss: Employee of IIM-Ahmedabad succumbs to Rs 50 lakh swindling trading scheme

Warnings Flashed as Manager Loses Over Rs 50 Lakh in WhatsApp Trading Scam

Deceptive Initial Public Offering leads to significant financial loss: Employee of IIM-Ahmedabad succumbs to Rs 50 lakh swindling trading scheme

Hey there! Today's story is a chilling tale of a manager at the Indian Institute of Management (IIM), Ahmedabad, who fell for an online trading scam run through a WhatsApp group. The poor guy lost a whopping nearly Rs 50 lakh!

So, what happened, you ask? Well, our unsuspecting victim came across a WhatsApp group named "E-28 ASK Capital Circle" while browsing Facebook. The group administrators, impersonating financial experts, offered some tantalizing stock market "tips" and prompted members to download a trading app called "ASKICPRO."

At first, our manager exhibited some caution and made a small investment of Rs 25,000 in a company called "CLARA Industries Ltd." The next day, he saw Rs 28,800 show up in his in-app wallet, which was enough to convince him. He continued to invest, hoping to double his money, only to fall headfirst into the scam. By March 27, his wallet balance suggested a staggering Rs 5 lakh.

But then, things took a dark turn. The scammers lured him into an alleged Initial Public Offering (IPO) of a company called "Informative Solution SME." He received a fake allotment letter and was asked to deposit an astounding Rs 42 lakh. Pushed by the promise of an Rs 18 lakh loan in exchange for an upfront Rs 20 lakh payment, he reluctantly transferred the funds in phases.

Later, he was asked to pay an additional Rs 15 lakh for "capital verification." Despite paying another Rs 10 lakh, he still couldn't withdraw his funds. When he attempted to retrieve Rs 45 lakh, his account was blocked, and he was kicked out of the WhatsApp group. His number was also blacklisted.

The Ahmedabad Cybercrime police have launched an investigation into the case, highlighting the increasing prevalence of such online trading scams on social media platforms like WhatsApp and Telegram.

Time to Be Vigilant

So, what can you do to avoid becoming a victim of online trading scams?

1. Stay Away from Unsolicited Messages: Ignore invitations to join trading groups or heed advice from unknown numbers or IDs. Be wary of messages promising unusually high returns or guaranteed profits.
2. Verify Authenticity: Check if the intermediary is SEBI-registered using the "Intermediary Search" tool on SEBI's website. Ensure you are dealing with authentic trading apps provided by legitimate brokers or RIAs.
3. Recognize Red Flags: Be suspicious of "guaranteed returns" and be cautious of overly professional or convincing communications.
4. Stay Informed: Regularly update yourself on common scam tactics and stay informed about current threats. Remember to report any suspicious activity to the relevant authorities.
5. Secure Your Finances: Use secure and verified payment methods and keep your personal and financial information private.

Stay informed, stay vigilant, and don't let these scammers take you for a ride! This is your friendly assistant Signing off. Until next time!

1. Unfortunately, a manager at IIM Ahmedabad fell prey to an online trading scam that operated through a WhatsApp group, leading to a loss of over Rs 50 lakh.
2. The scammers, posing as financial experts, administered a group called "E-28 ASK Capital Circle" and lured members with enticing stock market tips to download the app "ASKICPRO."
3. After experiencing initial success with a small investment of Rs 25,000, the manager continued to invest and was eventually scammed out of Rs 5 lakh by March 27.
4. The scammers manipulated him into investing in an alleged Initial Public Offering (IPO) called "Informative Solution SME," asking for a Rs 42 lakh deposit.
5. In an attempt to secure an Rs 18 lakh loan, the manager paid an upfront Rs 20 lakh, but was then asked to pay an additional Rs 15 lakh for "capital verification."
6. Despite paying more, he couldn't withdraw his funds, and when he attempted to retrieve Rs 45 lakh, his account was blocked, and he was expelled from the WhatsApp group, with his number also blacklisted - a stark reminder of the dangers lurking in today's digital finance world. To avoid such scams, it's essential to verify the authenticity of intermediaries, stay informed about scam tactics, and secure one's finances by using verified payment methods.

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