From The Economic Times · Akash Podishetti · · 1m 10s
Sebi Warns Against WhatsApp Stock Tips
Sebi warns investors to avoid fake WhatsApp stock groups that use fake profit claims to lure them into scams.
In brief
Sebi warns investors to avoid fake WhatsApp stock groups that use fake profit claims to lure them into scams. Sebi advises investors to avoid WhatsApp groups offering unverified stock tips and trading recommendations to prevent fraud. Originally reported by The Economic Times.
Sebi warns investors
Market regulator Sebi has warned investors against joining invitation-only WhatsApp groups offering stock tips and trading recommendations.
Fraudsters pose as experts
Fraudsters pose as market experts and use fake profit claims to lure unsuspecting investors into scams.
Unregistered groups operate
Sebi identified several unregistered individuals operating closed WhatsApp groups through overseas mobile numbers.
Astroturfing tactics
These groups use members working with operators to post misleading profit messages and praise fake experts.
Groups reinvigorate after bans
When groups are suspended, members receive fresh invitations from different mobile numbers for new groups.
Avoid fake groups
Investors should treat invitations as warning signs and leave groups rather than follow operators to new ones.
Verify credentials
Sebi advises investors to avoid opening accounts on trading platforms recommended through such groups.
The takeaway
Sebi advises investors to avoid WhatsApp groups offering unverified stock tips and trading recommendations to prevent fraud.
