SEBI Warns Against Rising Social Media Investment Scams

The Securities and Exchange Board of India has issued a cautionary advisory highlighting the increasing prevalence of fraudulent activities on social media platforms such as YouTube, Facebook, WhatsApp, and others. These scams are targeting retail investors, exploiting the growing popularity of digital platforms and the securities market.  

Key observations from the advisory:  
- Fraudsters are offering unregistered investment advisory services, often falsely claiming to be SEBI-registered entities or showcasing fake certificates.  
- Impersonation of SEBI-registered entities is rampant, with fraudulent trading platforms and private chat groups on WhatsApp and Telegram promising guaranteed returns.  
- Misleading advertisements and deceptive testimonials are being used to lure investors into exclusive groups like VIP trading clubs or discounted IPO allocations.  
- Fake trading and advisory apps are being promoted, claiming to offer institutional trading accounts and other exclusive benefits.  

SEBI has urged investors to exercise caution, verify the authenticity of social media handles, and only engage with SEBI-registered intermediaries and genuine trading apps. The regulator has also introduced a dedicated phone number series, beginning with 1600, for service calls from registered entities to enhance investor security.  

This advisory serves as a reminder for investors to remain vigilant and report suspicious activities to SEBI’s Market Intelligence portal.  

Sources: SEBI Official Website, Economic Times, Moneycontrol, Bloomberg News.