Surat Businessman Defrauded of Rs 22 Lakh in Elaborate Pre-IPO Investment Scam
A 55-year-old diaper trader operating from Athwalines in Surat has become the latest victim of a sophisticated cyberfraud, losing a staggering Rs 22 lakh to criminals who lured him with promises of high returns from pre-IPO investments. The elaborate scam, which unfolded over several months, involved a fraudulent mobile application, a WhatsApp group with hundreds of members, and a fake loan offer that ultimately trapped the victim.
How the Cyberfraud Unfolded
According to the detailed complaint filed with the Athwalines police, the accused first contacted the victim through social media in October 2025. The fraudsters persuaded the businessman to invest in what they claimed was a lucrative pre-IPO (Initial Public Offering) scheme, guaranteeing substantial profits. The victim, who has been running a successful diaper business in Surat for years, was added to a WhatsApp group by an unknown person.
The group, which contained approximately 200 members, was managed by an individual identifying himself as a supervisor. What made the setup appear legitimate was the existence of a group with a similar name in Surat, leading the trader to believe he was joining a genuine investment community.
The Fraudulent Application and Investment Process
The group administrator shared a link that directed the victim to download an application from the Google Play Store. This app presented itself as a comprehensive financial platform offering:
- IPO investment opportunities
- Trading advice and market insights
- Loan facilities
- Deposit and withdrawal functions
Through instructions delivered via the WhatsApp group, the accused directed the victim to transfer money using QR codes for investment in pre-IPO bids. The businessman complied, transferring Rs 22 lakh in multiple tranches to the fraudsters' accounts.
The Loan Trap and False Portfolio Growth
After receiving the investment funds, the criminals offered the victim a loan through the same application. The trader applied for a Rs 48 lakh loan, and on December 2, 2025, the accused 'sanctioned' a reduced amount of Rs 32 lakh. However, this loan amount was never actually credited to his bank account.
Meanwhile, the mobile application displayed that his investment portfolio had miraculously grown to an impressive Rs 2.13 crore, creating the illusion of massive profits. When the victim attempted to withdraw funds on December 15, 2025, the accused presented a new condition: withdrawals would only be permitted after he repaid the non-existent Rs 32 lakh loan.
Realization and Police Complaint
At this point, the businessman realized he had not received any loan amount and was being systematically cheated. When he tried to contact the accused for clarification and resolution, they completely stopped responding to his messages and calls.
Recognizing that he had fallen victim to an elaborate cyberfraud scheme, the diaper trader approached the Athwalines police station and lodged a formal complaint. The police have registered the case and initiated an investigation into what appears to be a well-organized online financial scam targeting investors with promises of pre-IPO profits.
This incident serves as a stark reminder of the sophisticated methods employed by cybercriminals to defraud unsuspecting individuals, particularly those seeking investment opportunities in promising sectors like pre-IPO offerings. Authorities are urging citizens to exercise extreme caution when approached with unsolicited investment opportunities through social media platforms and messaging applications.
