In the most recent bid to safeguard investors against scamsters, the exchanges have cautioned investors about certain dishonest individuals or groups, using both Indian and international phone numbers as well as social media accounts, falsely claiming to offer trading opportunities. The exchanges – NSE and BSEhave jointly advised the investors to refrain from joining any skeptical social media claims in the securities market through fictitious accounts or stock market analysis/advice.

In case of any suspicion of fraud, the exchanges have advised investors to report it to the Chakshu facility on http://www.sancharsaathi.gov.in and in case one has already lost money, investors should report the same on the cybercrime helpline number 1930 or http://www.cybercrime.gov.in. Investors are also advised to refer webpage link of stock exchanges to verify the genuine trading App.

The release urged investors not to subscribe to any scheme, referral, or product which guaranteed returns in the stock market without verifying its authenticity. The investors are also advised to not share their trading account’s credentials such as user ID or password. Investors should understand that investments offering high returns usually involve high risk which could be a fraud.

False claims by fraudsters

The fraudsters operate through social media social media like WhatsApp Groups, Telegram Channels, Facebook, Instagram Channels, etc. Here are some of the most common forms of scams that investors are sujected to-

  • Claims of association with reputed individuals/organisations
  • Provide unregulated trading platforms and unauthorized trading applications
  • Luring to join/create institutional accounts and guarantees high return with an official account.
  • Offering guaranteed returns on Investment in Capital/Forex/Commodities market,
  • Offering services to handle trading account of investors and asking share their login credentials,
  • False promise to facilitate pre-IPO subscriptions with assured profits,
  • Offering dabba/ illegal trading services,
  • Enticing victims through online trading courses, seminars and mentorship programs in the stock market, leveraging social media platforms

To plan their scams, these fradusters frequently employ mobile numbers registered under fictitious identities. They pose as reputable financial institutions and display phony certificates that seem to have been issued by SEBI or the Exchanges and offer trades through Foreign Portfolio Investment (FPI) or Foreign Institutional Institutional Investor (FII).