Scams in stock market: How should you safeguard your savings!

By staying vigilant and taking these precautions, you can protect yourself from falling victim to WhatsApp and Telegram stock market scams.

The stock market is reaching new heights and breaking all records. Many people are showing interest in the stock market, but unfortunately, the word "stocks" has become associated with scams. Some individuals with ill intentions target new investors or those less familiar with technology to scam them.

The scammers on platforms like WhatsApp and Telegram, looking to exploit investors. It's crucial for investors to recognize their vulnerability and take steps to protect themselves.

How the scam works through WhatsApp and Telegram: The case

Recently, a 61-year-old retired financial professional from Pune fell victim to a WhatsApp stock market scam. A scammer, posing as a woman, contacted the senior citizen via WhatsApp, presenting a lucrative investment opportunity in the equity market. To appear credible, she provided a fake mobile app resembling that of a reputable investment firm.

The scammer created a WhatsApp group filled with individuals who frequently flaunted their supposed profits from stock trading based on her tips. This deceitful setup persisted for a month, convincing the victim to invest nearly Rs 1 crore across transactions. To reinforce the illusion, the scammer sometimes showed the victim a false profit statement indicating earnings.

The victim's suspicions arose when he tried to withdraw some money and was instead asked to pay a withdrawal tax. Realizing the fraud, the victim reported the incident to the authorities.

How to protect yourself from Telegram and WhatsApp scams in the stock market

To avoid falling prey to Telegram and WhatsApp stock market scams in India, it is crucial to be vigilant and cautious. First, beware of unrealistic high returns. Promises of double or triple returns in a short period should be a major red flag. The stock market generally yields 12 per cent to 15 per cent returns over three to five years, so any guarantee of significantly higher returns is likely a scam.

Always verify the credentials of anyone offering financial tips. If you receive unsolicited investment advice, especially in finance-related WhatsApp groups, request the admin's registration number and verify it with SEBI or other relevant authorities. Stick to verified accounts on WhatsApp or Truecaller.

Thirdly, scammers often pose as stock market experts in WhatsApp groups, sharing fake success stories with the help of accomplices. Avoid clicking on suspicious links or opening attachments sent via WhatsApp messages, even if they come from a known person, as these often lead to phishing scams that steal money from bank accounts.

Before investing through any app, ensure its legitimacy by checking for a SEBI license for stock investing apps or an RBI license for NBFCs. Avoid downloading APK apps not listed on the Google Play Store or Apple Store. Be wary of unsolicited messages offering prizes, lotteries, loans, or high-return investments.

Lastly, protect your passwords and OTPs. Regularly change your passwords and enable two-factor authentication. Never share your financial information, passwords, or login credentials, even if the request seems legitimate. Using common credentials for investments can be a sign of a scam. By following these precautions, you can safeguard your investments and avoid becoming a victim of fraud.

Conclusion:

By staying vigilant and taking these precautions, you can protect yourself from falling victim to WhatsApp and Telegram stock market scams. Always verify information and be cautious of offers that seem too good to be true. If you suspect a scam, report it immediately through the appropriate channels. By taking these steps, you can safeguard your investments and avoid becoming a victim of fraud.

Disclaimer: The article is for informational purposes only and not investment advice.