Individuals/entities operating through Indian and international mobile numbers, via social media platforms like WhatsApp groups, Facebook, Telegram and Instagram channels, have been displaying fake certificates purportedly issued by Sebi/exchanges, according to a joint statement by the exchanges.
These operations often use mobile phone numbers registered under false names to orchestrate their plans, the statement said.
The activities of such persons/entities may include:
The entities have been providing unregulated trading platforms and unauthorized trading applications, which resemble or impersonate registered trading member applications/websites. They have been luring people to join/create institutional accounts to earn guaranteed/high returns without the need for an official or demat trading account.
Assured or guaranteed returns are offered on investments in capital, currency and commodity markets.
Entities offer to manage investors’ trading accounts by asking them to share their login credentials, including passwords.
These entities/individuals claim to facilitate pre-IPO subscriptions with false promises of guaranteed profits and offer dabba and illegal trading services.
“The exchanges advise investors to exercise due caution and refrain from joining any WhatsApp/Telegram group where stock recommendations are given along with market analysis or downloading any application offering institutional account services for members of WhatsApp/Telegram groups having the features of UPPER CIRCUIT stock trading, block deals at discounted prices, preferential allotment in IPOs etc. Please note that you could be the next victim of a transnational financial fraud promising unrealistic returns through fake institutional account services offered through Fake trade Applications,” the statement said.
Victims of these scams have been asked to transfer funds to third-party bank accounts and the funds are siphoned off from these accounts immediately and they are left high and dry with only paper profits displayed on the fake trading apps.
NSE has advised investors to report any suspected fraudulent communications at the Chakshu facility of the Department of Telecommunications.
For those who have already lost money, a complaint can be filed by calling the cybercrime helpline 1930 or www.cybercrime.gov.in.
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