An
online trading scam
involves
fraudulent activity
aimed at
deceiving individuals
into investing their money and ultimately stealing it. These scams can take many forms, but they generally share some common characteristics:
False promises:
Scammers often lure victims with unrealistic promises of high returns, guaranteed profits, or exclusive
investment opportunities
.
These claims are typically exaggerated or outright false, designed to entice people into investing without proper research or caution.
Unsolicited contact:
Scammers may reach out to you through phone calls, emails, social media messages, or even unsolicited text messages. They may impersonate legitimate financial institutions or investment advisors, creating a false sense of trust and authority.
Pressure to invest quickly:
Scammers often create a sense of urgency, pressuring you to invest quickly before the "opportunity" disappears. This tactics aims to cloud your judgment and prevent you from doing your due diligence.
Fake platforms or apps:
Scammers may direct you to invest through fake or unregulated online trading platforms or mobile apps. These platforms may appear legitimate but are designed to siphon off your funds and make withdrawal difficult or impossible.
High fees and hidden charges:
Beware of platforms or investments with unusually high fees, commissions, or hidden charges. Legitimate investments typically have transparent and reasonable fees.
Requests for personal information:
Legitimate financial institutions rarely request personal information like your Social Security number or bank account details over unsolicited communication. Be wary of anyone asking for such information before you invest.
Here are some tips to avoid online trading scams:
- Never invest based on unsolicited contact or promises of guaranteed returns.
- Do your own research before investing in any platform or opportunity.
- Only invest through reputable and regulated financial institutions.
- Never share personal information with someone you don't know and trust.
- Be cautious of platforms with high fees or hidden charges.
- If something sounds too good to be true, it probably is.
FAQs
1. Be cautious of fake accounts that impersonate genuine trading/investments or influencers. 2. Double-check the website URLs, reviews, privacy policy, terms & conditions and social media handles and review from the open source.
How do you protect yourself after being scammed? ›
Article: 6 Steps to Take after Discovering Fraud
- Don't pay any more money. ...
- Collect all the pertinent information and documents. ...
- Protect your identity and accounts. ...
- Report the fraud to authorities. ...
- Check your insurance coverage, and other financial recovery steps.
If you're looking to trade online in India, then you don't have to worry about safety or security at all. In India, the online stock trading system, infrastructure, and framework is highly robust and is very closely regulated by the authorities. Therefore, there's very little chance of a trade being fraudulent.
How do you deal with being scammed online? ›
If you yourself have been scammed, it will be helpful for you to find ways to take care of yourself – such as leaning on your support system of caring family and friends, taking time for self care activities, and not getting caught in negative or distorted thought patterns associated with the fraud/scam.
What is the biggest scam of India to date? ›
7 Biggest Financial Scams in India
- 'Coalgate': INR 1.86 Lakh Crore (Approx.)
- 2G Spectrum Scam: INR 1.76 Lakh Crore (Approx.)
- CWG Scam: INR 70,000 Crore (Approx.)
- Nirav Modi – PNB Bank Fraud: INR 14,000 Crore (Approx.)
- Vijay Mallaya: INR 9,000 Crore (Approx.)
- Satyam Scam: INR 14,162 Crore (Approx.)
Hang up the phone. Do not reply to emails, messages, or letters that the scammer sends. Do not make any more payments to the scammer. Beware of additional scammers who may contact you claiming they can help you get your lost money back.
What information does a scammer need to access my bank account? ›
The easiest way to become a victim of a bank scam is to share your banking info — e.g., account numbers, PIN codes, social security number — with someone you don't know well and trust. If someone asks for sensitive banking details, proceed with caution.
Who is India's most trusted trader? ›
- Paytm Money. Paytm Money is a relatively new entrant in the broking space, offering a simplified and user-friendly trading platform that caters to beginners and tech-savvy investors. ...
- Zerodha. ...
- Aditya Birla Capital. ...
- Upstox. ...
- ICICIdirect. ...
- HDFC Securities. ...
- Kotak Securities.
1) Which trading app is safe in India? Zerodha Kite, Angel One, and Finq.com are some of the safest trading applications in India.
Who is No 1 trading app in India? ›
Best Trading Apps for 2024: Fees and Features,
| Trading Apps | Top Features | Trading charges |
|---|
| Zerodha Kite | Possesses every possibility for stock trading | Rs.20 |
| Angel One | Quick stock purchases and sales | Rs.20 |
| Upstox App | Ideal for immediate investment | Rs.20 |
| Groww App | Ideal for Novices | 0.05% or Rs.20(whichever is lower) |
6 more rows- Don't click on links in an unsolicited email or text message.
- Don't use the phone number a potential scammer provided in an email or text message. ...
- Don't give out personal information such as passwords, credit card numbers, bank account numbers, dates of birth, or Social Security numbers.
Explore Online Footprints: The digital age leaves traces, and the scammer's online activity can be a valuable source of leads. Utilize social media platforms to search for the scammer's name or usernames. Look for any profiles or accounts that match details they provided you with.
Do banks refund scammed money in India? ›
Within 3 days: According to the apex bank of India, if you, as a customer, report any incident of a fraudulent transaction within 3 days of the incident, then you will bear zero liability for it. As a result, the total amount will be refunded to your respective bank account.
Who is the biggest stock scammer in India? ›
Highlights of Harshad Mehta Scam
Sucheta Dalal exposed Mehta's crimes and involvement in the columns of Times of India in 1992 after taking keen interest into his overly luxurious lifestyle. As valued in 2019, the Harshad Mehta scam had swindled nearly Rs. 250 Billion from the banking system.
What is the biggest corruption in India? ›
Many of the biggest scandals since 2010 have involved high level government officials, including Cabinet Ministers and Chief Ministers, such as the 2010 Commonwealth Games scam (₹70,000 crore (US$8.4 billion)), the Adarsh Housing Society scam, the Coal Mining Scam (₹1.86 lakh crore (US$22 billion)), the Mining Scandal ...
What is the biggest money laundering case in India? ›
In this case, a Gujarat-based firm, titled ABG Shipyard Ltd. (ABG SL.), was alleged to have defrauded a bank of 22,842 crores, which roughly comes to $3 billion. Around 28 banks were defrauded by this company, including the State Bank of India (SBI) and ICICI Bank.
What should I do after being scammed? ›
A scam constitutes fraud, which is a criminal act. Notify law enforcement immediately once you realize that you have been conned. This will enable you to obtain a police report, which could possibly help you recoup your losses. It will also allow law enforcement to begin their investigation promptly.
How to forgive yourself after being scammed? ›
Here are some tips for forgiving yourself after being scammed: Accept your emotions and begin the healing process. Reach out for support from friends and family. Take care of yourself by eating right, getting enough sleep, and exercising. Monitor and change your thinking.
Is there any way to get money back after being scammed? ›
Did a scammer make an unauthorized transfer from your bank account? Contact your bank and tell them it was an unauthorized debit or withdrawal. Ask them to reverse the transaction and give you your money back.
What should I do if I feel like I've been scammed? ›
You think a scammer has stolen your personal information
Complete a report through ReportCyber. Make yourself a harder target: Secure your social media and other personal accounts, such as your email. Change the passwords to any other accounts you think the scammer may have accessed, or to which they now have access.
