Online Investment Scam: Social media sites, messaging services, and video sharing platforms like YouTube, Telegram, WhatsApp, and Instagram, are riddled with convincing stock recommendations, which often promise instant returns. However, investors need to think and check who they are dealing with and where their money is going.
The Securities and Exchange Board of India (SEBI) has been continuously issuing warnings about fraudulent stock market recommendations, investment advisors without SEBI registration. In addition, the latest safety measures to protect investors have introduced registration checks, trading platforms, and tools for checking the authenticity of payment details.
1. Verify SEBI Registration of Advisor
Before acting on a stock tip, it is necessary to check if the entity giving authorized advice or research in investments is registered with SEBI.
Popularity or an influencer’s follower base, or screenshots of trading profits, or claims of having expert market knowledge do not authorize them to offer regulated investment services.
Investors must check and verify:
- Registered name and number.
- SEBI website independently.
- The person is NOT fake and the advisor or brokerage firm IS fake.
- Do not trust ‘SEBI compliant’. This does not prove registration.
In 2026, SEBI again had to issue a circular on this subject, focusing on the need for SEBI regulated entities and their agents to display registered names and registration numbers on social media.
Official resource: SEBI Intermediaries Registration
2. Check whether the trading app or platform is genuine
Investing on the Internet is very convenient but fraudsters take advantage of that and make fraudulent investment offers and create fake investment platforms to solicit investment from you. When looking at investment platforms, make sure they have a registration number with SEBI and make sure to find out what official platforms have been set up by the trading entity.
Do not trust social media and external links sent by strangers and do not invest on a platform that does not have a registration with SEBI.
SEBI has issued new investment scam guidelines for advertisers. In November 2025, SEBI warned investors to not trade on investment apps unless the investment app had a registration with SEBI.
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3. Verify Payment Details Using SEBI Check and UPI Handles
In making payments, whether to invest in securities, or to fund an intermediary, always verify the payment details. Even if the details appear genuine, never trust just the name, logo or picture.
There are two major payment safeguards.
- SEBI Check: Through the SEBI Check, users can check and verify the payment details of SEBI-registered intermediaries.
- UPI handles for investors: SEBI-registered intermediaries that cater to the public are eligible to use UPI IDs that end in @valid.
For the SEBI Check, users can access the payment details on the SEBI Check portal or the SEBI Saarthi app.
SEBI Public Investor-awareness Campaigns
The regulator’s overall objective is to empower the investing public through its various investor protection programs. On October 5, SEBI kicked off its nation-wide Project Jagrook investment awareness drive from Chandigarh. SEBI’s 2025 investor survey, published in 2026, found that 56% of surveyed investors relied on financial influencers for information about securities-market products.
What Should You Do If You Suspect An Investment Scam?
If you have transferred funds or provided sensitive account details:
Inform your bank/payment service provider immediately
Report any suspected incidents of cyber financial fraud via India’s National Cyber Crime Helpline 1930 or cybercrime.gov.in Change any compromised passwords and ensure your trading account is secure. Contact your broker if you think someone may have accessed your account.
Keep any records of payments, transaction reference numbers, correspondence, phone numbers and screenshots.
If your complaint relates to the securities market or any regulated intermediary then you should use SEBI’s SCORES investor grievance portal.
