SEBI Issues Advisory on Social Media-Driven Securities Market Frauds

Rising incidents of impersonation and scams involving unregistered entities posing as SEBI-registered intermediaries on platforms like WhatsApp, Telegram, and fake apps. Fraudsters use fake websites, apps, and social profiles mimicking legit SEBI-registered advisors. They offer “VIP” trading clubs, fake testimonials, and initial profits to gain trust.

Tactics Used by Scammers

• Impersonation of legitimate advisors with forged SEBI registration certificates and logos.
• Use of dormant apps repurposed into fake trading platforms to bypass app store scrutiny.
• Claims of exclusive insider information or guaranteed high returns as part of pump-and-dump schemes.
• Use of generic mobile numbers rather than the official “1600” series for SEBI-registered entities.

Verification and Protection Tips

• Always verify SEBI registration numbers of advisors via SEBI’s official site.
• Check if the app is listed by a SEBI-recognised exchange or broker.
• Review developer name, app reviews, and look for scam alerts online.
• Avoid direct fund transfers outside of SEBI-registered brokers or clearing corporations.
• Watch for red flags like grammatical errors, low-resolution certificates, and pressure to act quickly.

Practical Steps After Cyber Fraud

• Report cyber frauds at https://cybercrime.gov.in or to the local police.
• File a complaint on SEBI’s SCORES portal: https://scores.gov.in.
• Inform NSE or BSE to help track and warn about unregistered entities.
• Report suspicious numbers on the Sanchar Sathi portal/app.
• Immediately alert your bank/UPI provider to block transactions.
• Dial 1930 to initiate freezing of the recipient’s account.

BS