The Securities and Exchange Board of India (SEBI) has issued a strong caution to the public, warning against a surge in fraudulent and manipulative activities related to securities trading proliferating across various social media platforms.
In its latest advisory, SEBI highlighted that scamsters are increasingly using platforms like YouTube, Facebook, Instagram, X (formerly Twitter), WhatsApp, and Telegram to lure unsuspecting investors. These fraudsters pose as registered investment advisors or falsely claim SEBI affiliation through fake certificates and impersonation tactics.
Some of the prevalent scams include: fake investment advisory services by unregistered entities, impersonation of SEBI-registered firms via fraudulent channels, enticement to join exclusive groups like “VIP” or “Institutional Trading” groups, dubious offers for discounted IPOs or privileged trading accounts via unverified apps.
SEBI has urged investors to exercise caution and verify the authenticity of intermediaries through official channels. It emphasised engaging only with SEBI-registered entities and using legitimate trading apps. To improve security, SEBI has advised all registered intermediaries to use the ‘1600’ phone number series for transactional and service-related calls, helping investors differentiate genuine calls from potential fraud.