Hyderabad Police Nabs Vizag Man in IPO Allotment Fraud

Rao was involved in 19 cases across India, including two in Telangana. He was not only an account holder but also an account supplier, the police said.

A 63-year-old person received a WhatsApp message, which he assumed was linked to a private bank, offering IPO allotments and trading opportunities. Believing it to be genuine, he invested over Rs.43 lakh through four transactions between July 12 and early August 2025. The fraudsters regularly showed him fake profits and allotted discounted shares of listed companies after-market hours, claiming it was through QIP quota in IPOs.

They even allotted more shares than his available balance and forced him to pay an additional amount by calling it a non-interest loan, threatening to freeze his funds otherwise. On August 6, he realized that the entity had no connection with the bank and understood that he had been cheated.

Based on his complaint, the police registered a case and arrested the accused. Two mobile phones and SIM cards each, three passbooks, seven debit cards and 13 cheque books were seized from the possession of the arrested persons.

In an advisory, the police cautioned the public saying that fake investment frauds often appear as links and receiving calls through Whatsapp and Telegram messages, social media platforms, or fake company websites.

The victims may receive unsolicited calls, messages, or emails from scammers claiming to represent reputable companies. Scammers use professional language and tone, even show fake profits to build trust with victims.

They create fake investment profits on fake websites and apps and other portals to appear legitimate. Be cautious of unsolicited calls and messages. Stay wary of unexpected investment offers or messages. Legitimate companies do not ask or approach directly to invest in their companies.