Correspondent, 25 October: Capitalizing on the lure of overnight wealth, fraudulent syndicates are increasingly targeting stock market investors. Through 'invite-only' WhatsApp groups, scammers are drawing in victims with promises of free stock market training, 100 percent guaranteed insider calls, and claims of 200 percent daily profits. In response to these escalating scams, the market regulator SEBI has issued a strict warning to the public.
According to the Securities and Exchange Board of India (SEBI), these deceptive groups are typically operated using foreign mobile numbers. To trap unsuspecting individuals, the perpetrators employ a manipulation technique known as 'astroturfing.' Members of the syndicate share fake profit screenshots within the chat and post fabricated praise for the group admin. By creating an illusion that people are earning millions of rupees from their tips, the fraudsters successfully gain the trust of their targets.
Once trust is established, victims are instructed to purchase specific stocks, open a trading account on a designated app, or transfer funds to unknown accounts. Furthermore, if authorities like SEBI or the Cyber Cell block a fraudulent group, the operators swiftly launch a new one. They then send messages from new numbers claiming that the previous group was shut down due to "social media risk control rules" and invite users to join the new group for quality share tips. SEBI has explicitly stated that receiving such a link is a direct "Red Flag" and advised citizens to exit these groups immediately.
Additionally, SEBI has urged investors never to transfer money to unfamiliar accounts or open demat accounts on unregistered third-party trading applications and platforms promoted within these chats. The market regulator emphasized that all stock market transactions must be executed exclusively through SEBI-registered intermediaries and brokers. To ensure safety, investors are advised to verify the registration status and authenticity of any financial institution or expert by visiting SEBI's official website at sebi.gov.in.
