BENGALURU: A 77-year-old senior citizen has approached the cybercrime police after discovering that he was allegedly cheated out of more than Rs 67 lakh in the guise of lucrative pre-IPO stock market investments. The fraud came to light after the victim checked the firm’s credentials using ChatGPT, which flagged multiple warning signs.
According to police, the victim, a resident of Binnypet, was contacted in November 2025 by a man identifying himself as Yatin Shah, who claimed 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 lakh for the pre-IPO of ICICI Prudential AMC, after which he was shown profits in a digital wallet. Encouraged by the apparent gains, he was induced to make multiple RTGS transfers to different bank accounts for subsequent pre-IPO offerings, including Shyam Dhani Industries. Over the following weeks, he transferred money to several firms and entities, eventually investing a total of Rs 67.10 lakh.
The fraud allegedly escalated when the accused claimed that 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.
The AI tool reportedly flagged multiple red flags, including complaints, inconsistencies in company credentials and indicators commonly associated with investment fraud. Realising that he had likely been duped, the victim immediately approached the police.
Cybercrime police said 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.