In a major step to tackle rising digital investment fraud, the Securities and Exchange Board of India (SEBI) has partnered with Google to curb the spread of fake trading apps, unregistered financial influencers (finfluencers), and misleading online investment content.
The collaboration focuses on strengthening verification mechanisms, deploying AI-driven surveillance tools, and restricting fraudulent entities from operating across digital platforms.
Verified App System To Tackle Fake Trading Platforms
At the core of the initiative is a “verified app label” system on the Google Play Store, which identifies legitimate trading and investment apps linked to SEBI-registered intermediaries.
Currently, over 600 financial apps have been verified, with plans to expand the system to include other intermediaries such as investment advisors and bond platforms.
The move aims to counter a growing trend where fraudsters create lookalike apps that mimic genuine platforms and lure investors with promises of high returns.
SEBI Chairman Tuhin Kanta Pandey warned that such apps can cause “irreparable financial harm,” noting that investors are often deceived before they even interact with regulated entities.
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AI Surveillance And Crackdown On Finfluencers
Beyond fake apps, the regulator is intensifying action against unregistered finfluencers who promote misleading or illegal investment advice online.
SEBI has:
- Escalated over 1.3 lakh misleading posts for removal
- Taken down dozens of fake trading apps
- Deployed AI tools to track violations across platforms
The regulator has urged big tech platforms to strengthen AI-based detection systems to identify and remove such content proactively.
Ad Restrictions And Platform Accountability
A key pillar of the strategy involves restricting visibility for fraudulent entities. Tech platforms like Google are implementing systems to ensure that:
- Only SEBI-registered intermediaries can run financial advertisements
- Unregistered entities and finfluencers are blocked from promoting investment products
An API-based verification framework is also being introduced to validate advertisers and prevent misuse of digital ad ecosystems.
Real-Time Verification Tools For Investors
To empower users, SEBI is also developing tools that allow investors to quickly verify the authenticity of financial entities. These include:
- Checking whether a UPI ID or bank account belongs to a registered intermediary
- Validating whether funds are actually being routed into regulated markets
This approach aims to prevent fraud at the entry stage, before money is transferred.
Rising Threat Of Digital Investment Scams
The initiative comes amid a surge in cyber-enabled financial fraud, where scammers use:
- Fake apps and cloned platforms
- Social media channels and messaging groups
- Influencer-style promotions promising guaranteed returns
Authorities note that many victims are misled into transferring funds even before engaging with legitimate brokers, making early-stage intervention critical.
Towards A Verified Digital Investment Ecosystem
The SEBI-Google collaboration reflects a broader shift towards preventive regulation, combining technology, platform accountability, and investor awareness.
By integrating verification systems, AI surveillance, and stricter advertising controls, regulators aim to build a trusted digital investment ecosystem and reduce the growing risks posed by cyber-enabled financial fraud.
About the author – Rehan Khan is a law student and legal journalist with a keen interest in cybercrime, digital fraud, and emerging technology laws. He writes on the intersection of law, cybersecurity, and online safety, focusing on developments that impact individuals and institutions in India.
