Market regulator Sebi has issued a public caution to investors against rising stock market scams being spread through social media platforms such as WhatsApp, Telegram, and others. The regulator warned that fraudsters are using fake identities and deceptive tactics to lure unsuspecting investors with promises of guaranteed profits and free trading advice.
According to Sebi, these entities are targeting investors by sending unsolicited invitations to join WhatsApp groups with names like "VIP Trading Group" or “Free Stock Market Tips.”
Once added, users are bombarded with fake testimonials and manipulated screenshots that show unrealistically high returns. The scammers often pose as SEBI-registered advisors, celebrities, CEOs, or well-known public figures to appear credible.
“These groups are cleverly designed to build trust,” SEBI stated. “They use impersonation, fake profiles, and staged success stories to convince investors to part with their money, often by transferring funds to unknown bank accounts under false promises.”
Sebi has advised investors to exercise extreme caution and not act on investment advice received via unverified sources or unsolicited messages. It has also urged investors to only deal with Sebi-registered intermediaries and conduct all transactions through official trading platforms and mobile apps.
Investors can check the registration status of any intermediary at https://www.sebi.gov.in/intermediaries.html, and access investor support tools and verified apps at https://investor.sebi.gov.in/Investor-support.html.
The regulator reiterated that while social media has become an important tool for information sharing, it is also being exploited by unscrupulous elements to carry out frauds in the securities market. “Investors are urged to remain vigilant and stay away from unverified trading groups and offers that seem too good to be true,” Sebi said.
This advisory comes amid rising concerns over retail investors being misled during volatile market phases, highlighting the need for secure and informed investing practices.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
According to Sebi, these entities are targeting investors by sending unsolicited invitations to join WhatsApp groups with names like "VIP Trading Group" or “Free Stock Market Tips.”
Once added, users are bombarded with fake testimonials and manipulated screenshots that show unrealistically high returns. The scammers often pose as SEBI-registered advisors, celebrities, CEOs, or well-known public figures to appear credible.
“These groups are cleverly designed to build trust,” SEBI stated. “They use impersonation, fake profiles, and staged success stories to convince investors to part with their money, often by transferring funds to unknown bank accounts under false promises.”
Sebi has advised investors to exercise extreme caution and not act on investment advice received via unverified sources or unsolicited messages. It has also urged investors to only deal with Sebi-registered intermediaries and conduct all transactions through official trading platforms and mobile apps.
Investors can check the registration status of any intermediary at https://www.sebi.gov.in/intermediaries.html, and access investor support tools and verified apps at https://investor.sebi.gov.in/Investor-support.html.
The regulator reiterated that while social media has become an important tool for information sharing, it is also being exploited by unscrupulous elements to carry out frauds in the securities market. “Investors are urged to remain vigilant and stay away from unverified trading groups and offers that seem too good to be true,” Sebi said.
This advisory comes amid rising concerns over retail investors being misled during volatile market phases, highlighting the need for secure and informed investing practices.
(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
You may also like
Thane News: Former Shiv Sena Corporator Sudhir Kokate Attacked Over Old Enmity
Rio Ferdinand defends Luke Shaw and blames Man Utd teammate for Tottenham mistake
Mumbai Actress Targeted In Cybercrime As Obscene Images Shared On Telegram; FIR Registered
Uttar Pradesh News: 'Shaadi Anudan Yojana' Doubles Reach, Aids 1 Lakh OBC Families In FY 2024-25
Jay Slater's tragic final moments and phone call during fatal walk as cause of death confirmed in inquest
