Bengaluru banker loses ₹39.29 lakh in fake IPO, block trading scam

Bengaluru

A 49-year-old bank employee has lost ₹39.29 lakh after being lured into a sophisticated online stock market and IPO trading scam operated through WhatsApp and Facebook groups. An FIR was registered at East CEN police station on January 24.

The victim, Antony Das, was cheated by fraudsters posing as representatives of SEBI-registered institutional investors and global private equity firm Warburg Pincus LLC, promising high returns through block trading and IPO investments.

How the scam began

According to the FIR, Das joined a WhatsApp investment group on November 11, 2025, after clicking an invite link shared on Facebook. The group had 82 members and projected itself as a professional stock trading community with a dedicated “customer service team”.

Group members regularly shared screenshots of profits, IPO allotments, and successful withdrawals, creating an illusion of legitimacy. The scammers claimed that funds were routed through SEBI-registered accounts, encouraging members to deposit money for block trading and IPO participation.

Fake profits and controlled withdrawals

On November 24, 2025, Das was contacted by a group assistant named Mitali Mishra, who helped him create an account on a trading application downloaded from the Google Play Store. To gain his trust, he was advised to withdraw a small amount.

On December 3, 2025, Das successfully withdrew ₹300, reinforcing confidence in the platform. The app dashboard soon showed that he had earned a staggering ₹56.70 lakh, mostly from IPO allocations, including ICICI Prudential shares.

However, Das was later told that he needed to pay an additional ₹27.53 lakh to complete settlement for extra IPO shares allegedly allotted to him. When he refused due to lack of funds, communication from the group gradually stopped.

Second trap: ‘Freedom wings training plan’

In a parallel operation, Das was added to another WhatsApp group titled “D5 Group A – Freedom Wings Training Plan”, which claimed affiliation with Warburg Pincus LLC and involvement in Qualified Institutional Buyer (QIB) pre-market trading in India and the US.

A person named Mohan Sharma regularly shared stock tips and IPO recommendations, claiming near-perfect market predictions. Encouraged by consistent “profits” shown in the app and testimonials from other members, Das began investing heavily.

Between December 29, 2025, and January 17, 2026, he invested:

• ₹1,00,000 on December 29
  
• ₹2,00,000 on January 1
  
• ₹3,00,000 on January 7
  
• ₹4,80,000 on January 16
  
• ₹16,49,000 on January 17
  

He even pledged gold ornaments to raise funds, believing the promised returns would cover the risk.

The final blow

The fraudsters aggressively promoted the Avana Electrosystems IPO, claiming it would deliver 300% listing gains. After its listing on January 19, 2026, Das attempted to withdraw ₹60 lakh from the app.

At this point, a man identifying himself as Alex, claiming to be a “Warburg Pincus manager”, informed Das that he had to pay 20% tax, later reduced to 15%, before withdrawal could be processed.

When Das explained his financial condition, all communication ceased. Neither Alex nor Mohan Sharma responded further. The WhatsApp group was locked, allowing only admins to send messages, effectively cutting off victims.

Money routed to fraud accounts

Das later realised that he had transferred money from his SBI account to multiple fraudulent bank accounts provided by the scammers. The total loss stood at ₹39,29,000.

He immediately contacted the Cyber Crime Helpline (1930) and stopped further transactions.

Police action

Based on his complaint, police registered an FIR under:

• Section 66(C) and 66(D) of the IT Act, 2000 (identity theft and cheating by personation)
  
• Section 318(4) of the Bharatiya Nyaya Sanhita, 2023