In recent times, many new investors have been drawn to the stock market with dreams of high returns. Unfortunately, this has also attracted scamsters who use platforms like WhatsApp and Telegram to trick people. A recent example involves a 71-year-old retiree from Mumbai who lost Rs 2 crore in a WhatsApp scam.
How the Scam Works
Scammers often pose as financial experts and create fake WhatsApp groups. These groups are filled with accomplices who boast about their supposed investment gains to lure in victims. In the Mumbai case, the scammer even created a fake mobile app to make the scheme appear legitimate. The victim was shown fake profit statements and was convinced to invest a large sum of money. When he tried to withdraw his earnings, he was asked for more money, revealing the scam.
Avoiding Common Traps
Table of contents [Show] Promises of High Returns | Be cautious of investment opportunities that promise high returns with little or no risk. Genuine investments always carry some risk. Remember, if it sounds too good to be true, it probably is. |
Unsolicited Tips | Scammers often send unsolicited messages or make phone calls with investment tips. A reliable financial advisor will not reach out to you unexpectedly. Always verify the credentials of anyone offering financial advice. |
In-Person Meetings | Whenever possible, meet your financial advisor in person. This helps ensure you are dealing with a legitimate professional. If you receive investment advice over the phone or online, insist on a face-to-face meeting before making any decisions. |
Protect Yourself from Scams
Check App Authenticity | Before downloading any investment app, check the number of downloads and read reviews. Be cautious even if the app has many downloads, as scammers can manipulate these numbers. Search online for any negative reviews or reports of fraud related to the app. |
Verify Credentials | If someone claims to be from a reputable brokerage or financial institution, verify their credentials through official channels. Contact the institution directly to confirm their identity. |
Avoid Clicking Suspicious Links | Never click on links or attachments in messages from unknown sources, even if they appear to come from someone you know. These links can lead to phishing websites to steal your personal information. |
Stay Informed and Vigilant
Always do your research before making any investment. Consult with trusted financial advisors and verify all information through reliable sources. By staying informed and cautious, you can protect yourself from falling victim to these scams.
Remember, the key to safe investing is knowledge and vigilance. Avoid making hasty decisions based on unsolicited advice. Always double-check any investment opportunity.
