The Securities and Exchange Board of India issued an investor alert warning about securities market scams conducted via social media platforms, where fraudsters use unsolicited outreach to lure individuals into WhatsApp groups and then deceive them into transferring funds. The alert describes common tactics including invitations to join “VIP” groups or “free trading courses”, fake profiles presenting the operators as market experts, impersonation of SEBI-registered intermediaries and well-known public figures, and fabricated testimonials showing large profits. Investors are advised to ignore unsolicited messages from unverified sources, avoid joining such groups or communities, verify the registration status of entities with SEBI, transact only through authentic trading apps of SEBI-registered intermediaries, and engage only through genuine social media handles of registered entities.
Securities & Exchange Board of India 2025-05-21
Securities and Exchange Board of India cautions investors against social media stock market scams and fake WhatsApp trading groups
SEBI warned investors about securities market scams on social media, where fraudsters lure individuals into deceptive WhatsApp groups. Tactics include fake profiles, impersonation of SEBI-registered intermediaries, and fabricated testimonials. Investors should verify entities' SEBI registration and use authentic channels.