India’s capital markets regulator, the Securities and Exchange Board of India (SEBI), has raised an alarm over the growing number of scams targeting retail investors through social media platforms.
In a public advisory, SEBI urged investors to exercise heightened caution and verify the authenticity of entities claiming to be SEBI-registered before engaging with them online.
ALSO READ: Call for Chapters: Contribute to the Book “Cyber Crime – From Theory to Practice”
SEBI has observed a significant rise in fraudulent activities across platforms like YouTube, Facebook, Instagram, X (formerly Twitter), WhatsApp, Telegram, and even on app stores like Google Play and Apple Store. Scammers are reportedly luring investors through fake trading tips, deceptive educational content, and promises of assured or risk-free returns.
“With the widespread adoption of digital communication platforms, scamsters are enticing victims under the guise of financial education and exclusive trading services,” SEBI stated.
These fraudulent entities are often seen impersonating SEBI-registered intermediaries, falsely presenting themselves as credible advisory services by displaying forged SEBI registration certificates or logos. Many operate via private Telegram or WhatsApp groups, offering “exclusive” access to IPOs, institutional trading accounts, and discounted stock trades — all claims that SEBI says are false and misleading.
ALSO READ: Call for Cyber Experts: Join FCRF Academy as Trainers and Course Creators
SEBI has specifically cautioned investors against falling for flashy testimonials, exaggerated return guarantees, and unverified claims made through social media posts and ads.
“Investors are advised to deal only with SEBI-registered intermediaries and to use authentic, regulated trading platforms,” the advisory emphasized.
The regulator’s warning comes amid increasing reports of retail investors losing money to impersonators and dubious apps claiming regulatory approval.
Key Takeaways:
- Verify SEBI registration before investing
- Avoid groups or apps promising sure-shot IPOs or guaranteed returns
- Be cautious of fake testimonials and forged certificates
- Prefer official trading apps and intermediaries listed by SEBI
.