How do I recognise an investment scam?
Be careful with any investment that promises high, guaranteed returns, especially if it is recommended by someone you met online recently. Before investing, check that the advisor or platform is registered with SEBI, and look up the company on the RBI's Sachet portal.
Many investment scams start as a friendship or a relationship. After weeks of chatting, the person shows you their "profits" and invites you to a trading app or a WhatsApp group of "stock market experts". At first you can withdraw a little; then the money gets stuck and "taxes" or "fees" appear to release it.
Warning signs
- A promise of guaranteed returns, or returns far above normal.
- Pressure: "the offer ends today".
- An app or website you cannot find on official sources, or that appears on the RBI's Alert List of unauthorised forex trading platforms.
- You are charged a fee to release a withdrawal.
- Check the person or company in SEBI's list of registered intermediaries and on sachet.rbi.org.in before sending any amount.
Frequently asked questions
- I could withdraw a small amount. So is it safe?
- No. Letting you withdraw small amounts is a common trick to make you invest more.
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