SBI warns of 30% monthly return scams: 4 red flags investors must watch for | Personal Finance
An investment scheme promising 30 per cent monthly returns appears attractive but it could be a scam to steal your savings. The State Bank of India (SBI) has warned investors against get-rich-quick schemes promoted through social media, suspicious messages and unverified online platforms.
In a post on X, as part of its National Cyber Security Month Special Campaign 6.0, SBI urged people to verify investment opportunities before transferring money and rely on trusted financial channels.
Fraudsters often use unrealistic profit promises, fake testimonials and misleading advertisements to make their schemes appear genuine. Investors should watch for these warning signs before committing their money.
Here are four warning signs of investment fraud, according to experts:
1. Guaranteed or unusually high returns
Promises of extraordinary profits with little or no risk should raise suspicion. For instance, an investment of Rs 1 lakh growing at a hypothetical 30 per cent monthly return, with profits reinvested, would become approximately Rs 23 lakh in a year. Such claims can encourage investors to overlook the risks.
2. Pressure to invest immediately
Fraudsters may create artificial deadlines, claiming an offer will expire within hours. They may also insist on payments through UPI, cryptocurrency or gift cards. Such pressure is intended to prevent investors from checking the scheme’s credentials.
3. Unknown influencers and fake testimonials
Scammers may use unfamiliar social media accounts, fabricated success stories and screenshots of supposed profits to build credibility. A popular influencer or convincing testimonial does not establish that an investment is genuine.
4. Requests for sensitive information
Suspicious links may imitate bank or investment websites to collect bank account credentials, passwords and other financial details. Avoid entering sensitive information through unverified links received via messages, emails or social media.
How to verify an investment offer
Before investing, check the provider’s identity, regulatory status and product documents. For investment advice, verify the adviser’s registration with SEBI through official records.
SBI recommends the following precautions:
Verify the provider: Check the registration details of the adviser or investment intermediary through the relevant regulator’s website.
Read the documents: Understand the investment’s risks, fees, potential returns and withdrawal conditions.
Check payment details: Be cautious of requests to transfer money to personal accounts or unfamiliar UPI IDs.
Use official channels: If an offer claims to be associated with SBI, visit sbi.bank.in or contact a branch.
Avoid suspicious links: Do not share financial information through unverified websites or download unfamiliar applications.
SBI has also flagged urgent deadlines, suspicious website addresses, messages from ordinary 10-digit mobile numbers and generic sender names as possible signs of fraudulent communications.
What should you do if you lose money?
If you suspect investment fraud, contact your bank immediately and report the incident to the National Cyber Crime Helpline on 1930. You can also file a complaint at cybercrime.gov.in.
Preserve payment receipts, messages, phone numbers and screenshots as evidence. Avoid paying additional fees to anyone promising to recover your money without independently verifying their credentials.
Before investing, remember that unusually high returns are not proof of a genuine opportunity. Verify the provider, understand the risks and never let pressure or promises of quick profits dictate your financial decisions.
