Outlook Money
India is steadily fighting to decrease the number of investment scams as many are falling for such fraudulent trading schemes. Here are 5 signs that will alert you about potential scams.
Be wary of strangers trying to present you with offers of investments or financial advice via messages, emails, calls, or social media. Research the authenticity and check their background.
Scammers usually attract investors with unusually high returns but since genuine investments normally yield 12-15% annually, offers that sound too good to be true are very likely scams.
Scammers often falsely promise exclusive perks like buying shares, subscribing to IPOs, trading through demat accounts etc. One should always verify the vendor’s licence and registration before confirming.
If you are compelled to download bogus apps, always cross-check the reach of the platform, its physical address etc. A legitimate broker will only facilitate legitimate transactions through regulated platforms.
Scammers may show forged testimonials/credentials from satisfied customers, which could probably be screenshots, AI-generated, or even fake social media created to project authenticity.
Compiled by Priyanka Debnath