🚨 A Real IPO Scam Story: How Trust, Greed & Fear Can Cost You Everything

This is an actual incident shared with consent, anonymised to protect identities. The intention of this blog is only to create awareness.

Why We Are Writing This

At PaisaNurture, our mission has always been simple:

👉 Educate first. Protect always. Invest responsibly.

This blog is not about blaming anyone. It is about how intelligent, educated, financially disciplined people are also falling prey to sophisticated financial scams — especially IPO-related frauds.

The Beginning: A Simple IPO Question

One of our customers approached us with a simple question:

“Should I invest in IPOs?”

We explained:

• How IPOs work

• Risks involved

• Importance of using only SEBI-registered platforms

• Avoiding unknown apps, Telegram/WhatsApp groups, or guaranteed-return claims

Then she mentioned an investment app we had never heard of — something outside our professional ecosystem.

👉 We clearly advised NOT to invest through unknown platforms.

The Confidence Trap: “I’ve Been Following Them for 8–9 Months”

Despite the warning, she shared that:

• She had been following their group for 8–9 months.

• They shared daily messages, IPO updates, and success stories.

• They appeared confident, professional, and convincing.

Trust slowly replaced caution.

She signed up on their app.

The Big Hook: “You’ve Been Allotted ₹60 Lakhs Worth of IPO Shares”

A few days later, she received a call:

“Congratulations! You have been allotted ₹60 lakhs worth of shares in a reputed IPO.”

Reality check:

• She did not have ₹60 lakhs.

• But she did not want to miss the opportunity

What happened next is alarming 👇

❌ How the Scam Escalated

To fund the investment:

• ₹20 lakhs – entire life savings

• ₹10 lakhs – gold loan

• Borrowed money from her mother

• Remaining amount —

  👉 The so-called company took a loan in her name (as claimed by them)

All funds were “invested” in the IPO via their app.(asked to transfer money to 2 different accounts)

The Lock-In Lie: “You Can’t Sell the Shares Yet”

After IPO listing:

• She requested that shares be sold to repay loans.

• They said:

  “You can’t sell now. The shares are under loan. First, repay the remaining amount, then the shares will be transferred to your ownership.”

Fear set in:

• Growing debt

• Anxiety about unsecured loans

• Worry about professional reputation.

She came back to us again — this time in distress.

Our Investigation: Red Flags Everywhere 🚩

We asked her to start from the beginning and share:

• App name

• Website link

• Communication screenshots

What we found shocked her:

1️⃣ Fake App Interface

• The app link looked like a Google Play Store link.

• But it was just an image.

• Clicking:

  • Ratings ❌

  • Reviews ❌

  • Developer details ❌

• Every click only led to “Install”

👉 No real Play Store backend existed

2️⃣ Fake Authority Names Used

The fraudsters claimed association with well-known market names, including:

• Famous individuals

• Popular platforms like Zerodha, IIFL, etc.

⚠️ Scammers often misuse trusted brand names to gain confidence.

3️⃣ The Biggest Reveal: No Loan Exists

When she checked her CIBIL report:

• ❌ No loan in her name

• ❌ No unsecured credit

• ❌ No liability on her PAN

That’s when the truth hit hard.

The Realisation & Action

She finally understood:

• The entire setup was fake.

• There were no shares.

• There was no IPO allotment.

• The money was already gone.

She immediately:

• Filed a Cyber Crime complaint

• Stopped further payments

• Informed family members

⚠️ Lessons Every Investor Must Learn

🔴 1. No Genuine IPO Allotment Is Told Over the Phone

IPO allotments are:

• Transparent

• Process-driven

• Shown via official registrar platforms

• Never guaranteed

🔴 2. No One Can Arrange Loans “On Your Behalf” for IPOs

• IPO investing does not work like this

• Any such claim = SCAM

🔴 3. Fake Apps Are the New Weapon

• APK links

• Look-alike Play Store pages

• Fake ratings

• No developer traceability

👉 Always verify apps directly on Google Play / App Store

🔴 4. Big Names Are Used to Fool You

Scammers misuse:

• Celebrity names

• Reputed broker brands

• Market leaders

❗ Association claims ≠ authenticity

🔴 5. Never Click Unknown Links — Even “New Year Wishes”

Frauds today spread via:

• New Year/festival greeting links

• Fake rewards

• Digital arrest threats

• KYC update messages

Why Even Educated Investors Get Trapped

• Familiarity builds false trust (8–9 months of group presence)

• Fear of missing out (FOMO)

• Authority bias (big names, confident tone)

• Gradual escalation (small steps → big commitment)

• Emotional attachment to the “opportunity”

This removes shame and encourages victims to come forward. If You Suspect Fraud:

1. Stop all payments immediately.

2. Do not argue or negotiate with scammers.

3. Check CIBIL / Experian for unknown loans.

4. Save all screenshots, call logs, and links.

5. Report on cybercrime.gov.in

6. Inform your bank immediately.

⛔ Delay reduces recovery chances.

🛡️ How PaisaNurture Protects You

At PaisaNurture, we:

• Recommend only verified, SEBI-regulated platforms.

• Never promise guaranteed returns.

• Never push urgency-based decisions.

• Encourage pause, verify, then invest📌 —final Message.

If something sounds too good to be true, it usually is.

Please:

• Stay alert

• Educate your family

• Talk openly about money decisions.

• Verify before trusting

If you ever feel confused or pressured, talk to a trusted advisor first.

📩 We are here to guide, not to sell.

Disclaimer:

This article is for investor awareness and education only.

Names and platforms mentioned are for cautionary reference.

PaisaNurture does not endorse or associate with any unverified investment app or platform.