The Indian government has issued a warning to investors about rising fraud on stock trading apps and platforms. The Press Information Bureau (PIB) Fact Checking Team shared important information with users on X (formerly Twitter). This warning comes from PIB’s Fact Checking Unit, operating under the Ministry of Information and Communications, urging users to remain vigilant as cybercriminals exploit fake profiles to deceive individuals in groups. stock trading.
Typically, these scams begin when potential victims receive an invitation to join a WhatsApp group, where they encounter fraudulent trading apps. These scam apps often copy the appearance of famous brokerage platforms. Initially, users may notice small profits in their trades, which builds their confidence and makes them invest more money.
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In recent months, many individuals across the country have fallen victim to these schemes, resulting in significant financial losses. The warning from PIB Fact Check highlights the need for increased awareness and caution among online traders.
Key warnings from PIB Reality Check
PIB fact-checking groupposted a message on X reads: “New scam alert! Cybercriminals with fake profiles and fraudulent #stock trading group links are tracking victims on @X. #StockMarketScam @MIB_India @HMOIndia @GoI_MeitY.” The post highlights that these cybercriminals create fraudulent profiles on X to target potential victims, often including links to bogus stock trading groups.
In the alert, PIB Fact Check emphasizes the importance of verifying the identity of unknown individuals before engaging in any financial transaction.
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Safety advice for investors
To protect themselves from online trading scams, users should follow some safety tips:
1. Question about profit guarantee promise: Any claim of guaranteed investment returns may indicate a scam. There is no investment without risk.
2. Avoid high-pressure tactics: Scammers often use panic tactics to push victims to invest quickly. Take the time necessary to thoroughly research your options.
3. Verify broker registration: Confirm that your broker is registered with the relevant regulator.
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4. Be cautious with influencers on social networks: Some influencers may promote fraudulent investment opportunities. Always conduct independent research before acting on their advice.
5. Choose a reputable trading platform: Use established and managed platforms for trading activities.
6. Update software regularly: Keep your computers and mobile devices equipped with the latest security updates to protect against malware and phishing attacks.
By following these guidelines, investors can reduce the risk of falling victim to scams on stock trading apps and platforms.
