Foxy IPO scam: doctors, bank managers fall prey

A foxy Initial Public Offering (IPO) investment scam, orchestrated through the dark web and WhatsApp, has duped victims across India, including professionals like doctors, teachers, and bank managers. The Hyderabad Cyber Crime Police recently busted the scam by arresting Bobbari Srinivasa Rao, a 34-year-old from Visakhapatnam, Andhra Pradesh, who is linked to a Rs 43 lakh fraud.

Rao was running a vast network across India, with 19 cases registered in various states. Using the dark web, the gang faked ties to banks such as the Bank of Baroda and Axis Bank, sending WhatsApp links to trap victims with promises of high returns. Investigations revealed Rao’s trip to Indore to meet with associates and gather public data to target victims. Police traced and arrested him in Visakhapatnam, though his partners remain at large. Police seized two SIM cards, two mobile phones, three passbooks, seven debit cards, and 13 chequebooks from him.

The arrest followed a complaint from a 63-year-old Hyderabad resident who lost over Rs 43 lakh. He received a WhatsApp message from “AXIS Security”, posing as an employee of Axis Bank, offering exclusive IPO allotments and trading deals. Trusting the offer, he transferred money in four payments between July 12 and early August 2025. The fraudsters showed fake profits on sham dashboards, claimed that shares were allotted via a Qualified Institutional Placement (QIP) quota, and even pressured him with a fake ‘loan’ and threats to freeze his funds. On August 6, he realised the scam had no link to Axis Bank and alerted the police.

According to the police, like him, even doctors, teachers and bank managers fell prey to this scam. We are investigating it.

Speaking to The Hans India, Inspector S Mattam Raju called the scam a “Maya Sabha,” or “Hall of Illusions.” He said, “It is like a palace of sparkling gems, diamonds, emeralds, rubies, and dazzling victims with fake profits. But it’s all an illusion to steal their money.” Every day at 3:30 pm, when the stock markets close, WhatsApp links appear, urging people to share details for ‘lucrative” IPO investments. This sophisticated trap did not just target retirees; it fooled educated professionals with its polished façade, he added.

Police urge people to be beware of unsolicited investment offers via calls, WhatsApp, Telegram, or fake websites claiming to be associated with reputed companies.