How to Avoid WhatsApp and Telegram Investing Scams in Stock Market
The stock market is booming. And with that, the attraction of high returns is luring first-time investors into the market. Unfortunately, this excitement also attracts scammers on platforms like WhatsApp and Telegram, eager to exploit inexperienced investors. These investors must recognise their vulnerability and take steps to protect themselves.
Read this blog carefully to learn how WhatsApp and Telegram scams related to the stock market work and how to avoid them.
How the Scam Works Through WhatsApp and Telegram: A Real-Life Incident
Recently, a 71-year-old retired financial professional from Mumbai fell victim to a WhatsApp stock market scam.
According to the report, on June 19, the scammer, a woman, contacted a senior citizen via WhatsApp, presenting a lucrative investment opportunity in the equity market. To enhance her credibility, 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 purported profits from stock trading based on her tips. This deceitful setup persisted for a month, convincing the victim to invest nearly ₹2 crore across 24 transactions. To reinforce the illusion, the scammer showed the victim a fabricated profit statement indicating earnings of ₹14 crore.
The victim's suspicions arose when he tried to withdraw some money and was instead asked to pay a withdrawal tax. Realising the fraud, he reported the incident to the authorities, and the case is currently under police investigation.
How to Protect Yourself from Telegram and WhatsApp Scams in Stock Market
To avoid falling prey to Telegram and WhatsApp scams in India associated with the stock market, consider the following important points:
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Beware of Unrealistic High Returns
Exercise caution when offered promises of doubling or tripling your money in a short time.
As an investor, you should keep your greed in check. As per some published research pieces, the stock market generally yields 12% to 15% returns over three to five years, and hence, the promise of higher, guaranteed returns should serve as a major red flag.
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Verify SEBI/RBI Licences for Investment Tips
Be wary of unsolicited investment advice. You must always verify the credentials of anyone offering financial tips.
If you are in a finance-related WhatsApp group, request the admin's registration number and verify it with SEBI or other relevant authorities. Stick to verified accounts on WhatsApp or Truecaller.
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Beware of WhatsApp or Telegram Groups
Scammers often use stock market WhatsApp groups to pose as stock market experts, sharing fake success stories with the help of accomplices.
Links shared in these groups often lead to phishing scams that steal money from bank accounts. Avoid clicking on suspicious links or opening attachments sent via WhatsApp messages, even if they come from a known person.
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Check the Legitimacy of New Apps or Websites
Before investing through any app, ensure its legitimacy by checking for a SEBI licence for stock investing apps or an RBI licence for NBFCs.
Avoid downloading APK apps that are not listed on the Google Play Store or Apple Store. Be cautious of unsolicited messages offering prizes, lottery, loans or high-return investments.
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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.
Groww’s Advisory on WhatsApp and Telegram Channels
Given the increasing number of such scams, it is essential to inform users that Groww does not have any advisory channels on WhatsApp or Telegram to provide investment advice. If you encounter any such claims, be aware that they are fraudulent.
Also, read about Groww's Official Social Media Channels.
How Can You Report Scams?
If you encounter a scam through Groww, report it through:
- Groww App: Raise tickets directly from the app. Use the following links to raise tickets and report any grievances-
- For Tickets - https://groww.in/help/my-account/searchable/how-to-contact-groww-customer-care--74
- For Grievances - https://groww.in/help/my-account/searchable/customer-care-and-grievance-escalation-matrix-14 - Customer Support: Email [email protected] or call the customer care number at +91 0880 000 000.
- Social Media: Reach out to Groww's official social media handles.
1) Facebook - https://www.facebook.com/growwapp/
2) X (previously Twitter) - https://x.com/_groww
3) Instagram - https://www.instagram.com/groww_official/?hl=en
4) Youtube - https://www.youtube.com/@Groww - Cyber Crime Authorities: Report scams at https://cybercrime.gov.in/ or contact the Cyber Crime Cell helpline at 1930.
If your issue is not resolved through these channels, escalate your grievance to higher authorities within Groww for further assistance.
The Bottom Line
By staying vigilant and taking these precautions, you can protect yourself from falling victim to WhatsApp and Telegram scams related to the stock market.
Always verify information and be cautious of too-good-to-be-true offers. If you suspect a scam, report it immediately through the appropriate channels. By taking these steps, you can safeguard your investments and avoid falling victim to fraud.