IPO scams search to take advantage of the general public want for fast earnings. File
| Photo Credit: A. ROY CHOWDHURY
The Telangana State Cyber Security Bureau (TSCSB) have warned inventory market buyers about a big rise in scams concentrating on Initial Public Offerings (IPOs).
While 627 instances have been reported in 2023 with a complete lack of ₹3.9 crore, a lack of ₹27.4 crore has already been reported in 2024 to date with 213 instances.
These scams exploit the need for fast earnings and use messaging platforms like WhatsApp, Telegram, Instagram and Twitter to lure victims, mentioned Director of TSCSB Shikha Goel.
“Fraudsters use these platforms to offer fake opportunities to invest in upcoming IPOs through institutional channels, promising high returns. They entice victims to download fraudulent trading applications that allow them to steal personal and financial information. Once the information is obtained, victims are presented with fake dashboards showcasing bogus investment portfolios, further convincing them to invest more money. However, when they attempt to withdraw their supposed profits, the requests are denied, resulting in significant financial losses,” she defined.
To safeguard from falling sufferer to those IPO scams, officials urged that it’s essential to comply with the rules and precautions supplied by regulatory our bodies like Securities and Exchange Board of India (SEBI), inventory exchanges and licensed stockbrokers. “Always trade through reputable and regulated stock exchanges and utilise services only from SEBI-registered brokers with verifiable credentials. Remember, trading without a Demat account or through unauthorised apps is highly risky and should be avoided at all costs,” they defined.
