In yet another alarming case of financial fraud, a 74-year-old Bengaluru man was cheated of a massive ₹1.33 crore in a sophisticated fake IPO scam, as reported by Reethu Rajpurohit.
The incident highlights how scammers are increasingly targeting senior citizens by exploiting their trust, savings, and limited familiarity with modern financial traps.
The victim, identified as Shivakumar, had been promised high returns through an upcoming Initial Public Offering (IPO). Instead, he lost his life savings to fraudsters posing as “investment advisors.”
How the Scam Unfolded
According to the FIR filed on September 21, Shivakumar was approached by a man named Mahesh, who claimed to have insider knowledge about a lucrative IPO.
Here’s how the scam was executed:
✔ 1. Fake Investment Advisory Pitch
Mahesh convinced Shivakumar that the IPO was "guaranteed to give big profits" and that early investors would earn enormous returns.
✔ 2. Request for Large Upfront Investments
Over multiple transactions, Shivakumar transferred ₹1.33 crore into accounts shared by the scammer.
✔ 3. False Promises & No Receipts
The scammer issued fabricated documents and payment confirmations to keep the victim believing the investment was real.
✔ 4. Disappearing Act
When Shivakumar began asking for updates or refunds, Mahesh stopped responding altogether.
Realizing he had been cheated, the elderly man filed a police complaint.
Investigation Status
Police have registered a case and initiated:
Tracking of bank transactions
Technical surveillance of phone numbers
Verification of forged documents
Searches for scammer’s whereabouts
Authorities have warned that IPO scams are rapidly increasing and urged investors to be extra cautious.
Why Senior Citizens Are Easy Targets
Fraudsters often choose elderly victims because:
They have lifetime savings
They trust people easily
They may not verify details online
Scammers speak politely and convincingly
They respond quickly to “safe investment” promises
This case is a stark reminder of how digital and offline scams are evolving.
What Is a Fake IPO Scam?
In this type of fraud:
Scammers pretend to offer “pre-IPO allotments”
They pretend to be brokers, advisors, or company insiders
Victims are shown fake SEBI or NSE documents
Money is taken but no shares are allotted
Scammer disappears once funds are transferred
Legitimate IPO allotment cannot be guaranteed by any individual, broker, or agent.
🛡 How to Avoid IPO Scams
✔ Always apply through:
Official broker platforms
SEBI-approved UPI apps
Bank ASBA facility
✔ Red flags include:
❌ Assured IPO allotment
❌ Request to transfer money to personal accounts
❌ High-return promises
❌ Fake identity cards or forged documents
❌ Pressure to invest quickly
✔ Always verify:
Company details on SEBI/NSE websites
Status of IPO registration
Authenticity of advisory services
PAN-based investment limits
⭐ Conclusion
The Bengaluru fake IPO scam is a heartbreaking case that highlights the urgent need for investor awareness, especially among elderly individuals.
As financial fraudsters become more sophisticated, it is crucial to stay alert and verify every investment opportunity.
Shivakumar’s case should serve as a reminder to all:
If someone guarantees profits, it’s always a scam.
❓ FAQs
1. How much money did the victim lose?
₹1.33 crore in a fake IPO scam.
2. How did the scammer convince him?
By offering guaranteed IPO allotment with high returns.
3. Who is the main accused?
A man identified as Mahesh.
4. Can anyone guarantee IPO allotment?
No. It’s not possible for any broker or advisor to guarantee allotment.
5. What should investors do to stay safe?
Apply only through official ASBA/UPI channels and verify all claims.
Published on : 24thNovember
Published by : SMITA
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Source Credit: Reported by: Reethu Rajpurohit