‘In fake world, people are losing tonnes of money’: SEBI chief Tuhin Kanta Pandey on WhatsApp, Telegram investment scams
Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey has warned investors against fraudulent investment recommendations circulated through platforms like WhatsApp and Telegram, saying people are losing huge amounts of money by trusting misleading claims.
Speaking at NDTV Profit Ignite on Wednesday, Pandey said that SEBI would take tough action against malpractice involving groups that lure investors with promises of exceptional or guaranteed returns.
“It’s a fake world. In that fake world, you know, people are believing and losing tonnes of money,” Pandey said.
SEBI warns investors against messaging platform scams
Pandey’s remarks came amid concerns over investment-related fraud on messaging platforms, where potential investors and even common people receive messages that promise unusually high or guaranteed returns.
The SEBI chief said the regulator would deal firmly with such malpractice. He also asked the investors to verify the authenticity of financial entities before transferring money.
What is SEBI Check?
As part of its efforts to protect investors, SEBI has introduced SEBI Check, a tool that allows users to verify whether a bank account, Unified Payments Interface (UPI) address or QR code is linked to a regulated entity in the securities market.
Pandey said investors could use the facility to carry out these checks before making payments, helping them verify the details of the recipient.
SEBI steps up efforts to tackle misleading financial promotions
Pandey also highlighted SEBI’s collaboration with Google to display verified labels for trading applications on the Google Play Store in India.
The initiative is aimed at helping users identify verified trading apps, while the regulator is also taking action against misleading financial influencers.
Advisory from MHA
Earlier in July this year, the Ministry of Home Affairs (MHA) had warned investors of investment scams being operated through WhatsApp and Telegram, ANI reported.
Investigators in the Indian Cyber Crime Coordination Centre (I4C) wing of the MHA warned about fraudsters creating fake investment groups while posing as experts in markets or representatives of financial firms. The users are enticed with “tips” about stocks, false trading success stories and unusually high or guaranteed returns.
Such scams often begin with inviting the unsuspected investors to join a WhatsApp or Telegram groups through links. These groups then offer these investors “investment tips” and “exclusive opportunities” with fabricated profits on fake trading apps to gain their confidence and are repeatedly persuaded to invest more money.
These fraudsters don’t let victims withdraw their funds and often demand extra money for “taxes, processing charges or account verification”. The victims are then pressured to deposit more sums to recover their original investment.
They have cautioned the public not to trust investment advice shared in unknown WhatsApp or Telegram groups.
