In a press release issued today, Sebi said that scamsters are increasingly using these platforms to lure unsuspecting investors in the guise of educators while offering trading tips. They also provide misleading or deceptive testimonials while promising or guaranteeing assured or risk free return through these SMPs.
One of the most commonly used tactics is unregistered entities and individuals posing as Sebi-registered investment advisors. The regulator said that the entities display fake certificates or misuse the names of legitimate firms to cheat the investors. Moreover, fraudulent apps and groups on messaging platforms such as WhatsApp and Telegram also impersonate genuine entities, claiming to offer exclusive investment services and assured profits.
These deceptive channels also use misleading and manipulative content to lure investors to join these SMPs with names like ‘VIP Trading Group’, ‘Discounted Trading Group’, ‘Institutional Trading Group’, ‘Official stock Community and ‘Investment Club’.
“Scamsters are enticing gullible investors by claiming that they provide exclusive services on their platform (Fake trading/ advisory apps) facilitating securities trading that allow the subscriber to enjoy preferential services with regard to trade and share price e.g. Institutional trading account, IPOs at discounted price, Block Trade at discounted price and Sure shot allocation of IPO,” the release said.
Sebi has advised investors to remain vigilant and conduct thorough due diligence before engaging with any financial service advertised on social media. The regulator advises cross-checking the authenticity of advisory services and social media handles with SEBI’s official database to avoid falling prey to such scams.Sebi said that any investment in the securities market should be done only with registered intermediaries and authentic trading apps.The details of the registration status and trading apps of the SEBI registered intermediaries can be verified on the following web links:
— Registered intermediaries: https://www.sebi.gov.in/intermediaries.html
— Trading Apps: https://investor.sebi.gov.in/Investor-support.html
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