SEBI warns of securities market frauds via YouTube, Facebook, X and more

IANS April 12, 2025 137 views

The Securities and Exchange Board of India (SEBI) has issued a critical warning about escalating securities market frauds across digital platforms. Scammers are increasingly using social media channels like YouTube, Facebook, and WhatsApp to lure unsuspecting investors with false promises of guaranteed returns. These fraudulent platforms often impersonate legitimate SEBI-registered entities and use manipulative tactics to attract victims. The regulator strongly advises investors to exercise extreme caution, verify social media handles, and only engage with officially registered intermediaries.

"Scamsters are enticing gullible investors by claiming exclusive services on fake trading/advisory apps" - SEBI Statement
Mumbai, April 12: Alarmed at frauds related to securities market on various social media platforms, capital markets regulator SEBI has issued an advisory for investors to exercise caution and due diligence to verify the genuineness of social media handles of SEBI-registered entities while accessing them.

Key Points

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- SEBI detects widespread fraud across YouTube, Facebook, Instagram and social platforms

SEBI noticed an increase in frauds related to securities market on various social media platforms such as YouTube, Facebook, Instagram, X (previously Twitter), WhatsApp, Telegram, Google Play Store and Apple Store, etc.

"With increasing adoption of digital communication platforms, it is observed that scamsters are enticing victims by giving trading calls in the name of providing education. They also provide misleading or deceptive testimonials, promise or guarantee of assured or risk-free return etc. through various social media platforms," according to a SEBI statement.

SEBI noticed unregistered investment advisory services being provided by entities that falsely claim to be registered intermediaries with SEBI or by showcasing fake certificates purportedly issued by the regulator.

It also observed impersonation of SEBI-registered entities by fraudulent trading platforms, WhatsApp, Telegram channels which deceptively claim or suggest affiliation with SEBI-registered entity claiming to provide assured or risk-free return.

"Scamsters are enticing gullible investors by claiming that they provide exclusive services on their platform (fake trading/advisory apps) facilitating securities trading that allow the subscriber to enjoy preferential services with regard to trade and share price -- institutional trading account, IPOs at discounted price, block trade at discounted price and sure shot allocation of IPO," said SEBI.

Also, misleading and manipulative contents have been designed by scamsters to entice investors to join private chat groups or channels on WhatsApp/Telegram, through fraudulent ads/posts on various social media platforms.

"Investors are advised to exercise caution and due diligence to verify the genuineness of social media handles of SEBI registered entities while accessing them," the regulator noted.

Further, while investing in securities market, investors are advised to deal with only SEBI-registered intermediaries and authentic trading apps, it added.

Reader Comments

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Rahul K.
This is so important! My uncle got scammed last year by one of these Telegram groups promising "risk-free returns". Lost nearly 2 lakh rupees before we realized it was a fraud. More people need to be aware of these scams. 👍
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Priya M.
I see these fake trading ads all over Instagram! They make it look so legit with fake testimonials. SEBI should work with social media companies to take these down faster.
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Amit S.
While the warning is good, SEBI needs to do more than just issue advisories. They should actively track and shut down these fraudulent operations. Prevention is better than cure!
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Neha P.
The "sure shot IPO allocation" scams are the worst! People get so excited about IPOs that they forget to verify. Always check SEBI's website for registered intermediaries before investing.
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Sanjay R.
I appreciate SEBI's effort, but the advisory could be more specific. What exactly should investors look for when verifying social media handles? A step-by-step guide would help common people.
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Tanya V.
These scammers are getting smarter every day 😔 Just yesterday I got a WhatsApp message offering "institutional trading accounts". Blocked immediately! Stay vigilant everyone!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Tags:
SEBI Investment Fraud Social Media Scams Financial Safety Digital Fraud Securities Market
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