Daijiworld Media Network – Bengaluru
Bengaluru, Jan 7: A 77-year-old senior citizen from Bengaluru has approached the cybercrime police after allegedly losing over Rs 67 lac in a sophisticated pre-IPO investment fraud, which was only uncovered after he used ChatGPT to verify the firm’s credentials.
According to police, the victim, a resident of Binnypet, was contacted in November 2025 by a man identifying himself as Yatin Shah, claiming to be an adviser with IIFL Wealth Management. The caller promised assured allotment of pre-IPO shares with high returns and persuaded the senior citizen to sign an account agreement and begin investing.
The victim initially transferred Rs 5 lac for the pre-IPO of ICICI Prudential AMC, after which he was shown profits in a digital wallet. Encouraged by apparent gains, he was induced to make multiple RTGS transfers to various bank accounts for subsequent pre-IPO offerings, including Shyam Dhani Industries. Over several weeks, he transferred money to several firms and entities, eventually investing a total of Rs 67.10 lac.
The alleged fraud escalated when the accused claimed the victim had been allotted shares far in excess of his request, showing paper profits of nearly Rs 2 crore. To ‘regularise’ the transaction, the accused offered a loan but later refused to allow any withdrawal unless the loan amount was repaid through fresh payments.
When repeated requests to withdraw even a portion of his funds were denied, the victim grew suspicious. He then searched for details about the company and its representatives using ChatGPT, which reportedly flagged multiple red flags, including complaints, inconsistencies in company credentials, and indicators commonly associated with investment fraud. Realising he had likely been duped, the victim immediately approached the police.
Cybercrime authorities confirmed that a case has been registered under relevant sections of the Information Technology Act, and efforts are underway to trace the money trail. Further investigation is in progress.