How to Spot Fake Trading Apps and Investment Scams

The common pattern

Many recent frauds follow the same script: an advertisement or social-media message invites you into a WhatsApp or Telegram "stock tips" group; you are asked to install an app or visit a website that looks like a real broker's; you "deposit" money into a bank account or UPI ID; the app shows large profits; and when you try to withdraw, you are asked for "taxes" or "fees" — and the money is gone.

Warning signs

• Guaranteed or very high returns – no genuine investment can promise them.
• Payment to a personal or unrelated bank account/UPI – genuine brokers only accept funds from your own linked bank account into their designated client accounts.
• APK downloads or links from chats instead of the official app store listing.
• "Institutional accounts", "VIP IPO allotment" or "block deals" offered to retail investors.
• Pressure to act fast and to keep it secret.
• No SEBI registration number, or one that belongs to a different entity.

How to verify

1. Look up the broker on SEBI's list of registered stock brokers.
2. Go to the broker's official website yourself and follow its link to the app store.
3. Check that you received a welcome email from the exchange/depository when your account was opened.
4. Confirm trades in your contract notes and the depository CAS.

If you have been targeted

• Stop all payments.
• Report cyber fraud on the national helpline 1930 or at cybercrime.gov.in.
• Inform your bank.
• Report unregistered entities to SEBI.