What it looks like
"Welcome to the VIP Wealth Club! Our professor's last 5 calls gave 300% returns. Download our institutional app for exclusive IPO allotment." (Illustrative)
How the stock tips whatsapp group scam works
- You see an ad or get added to a WhatsApp or Telegram group about stock market learning.
- An 'expert' or 'professor' shares free tips, and many members post profit screenshots and praise.
- You are offered special access to IPOs, block deals or institutional accounts through an app or website.
- The app shows rising profits, so you invest more.
- When you try to withdraw, you are asked for taxes or fees, or the app blocks you.
- If the group is shut down, you get an invite from a new number to a replacement group.
Red flags
- Invite-only group run by an unknown person, often with an overseas number
- Promises of guaranteed or very high returns
- Many members posting profits and thanks
- Being told to trade on an app or website not offered by a SEBI-registered broker
- Paying into a personal or company bank account instead of your own trading account
- A message saying the old group was 'banned' and inviting you to a new one
- Fees or 'taxes' demanded before withdrawal
What to do
- Leave the group and stop sending money. Do not pay any 'withdrawal fee'.
- Verify any broker or adviser on SEBI's website before investing.
- Save screenshots of the group, app, payment details and chats.
- Report at once: call 1930 (National Cyber Fraud Helpline) or file at cybercrime.gov.in. Speed matters, because reports help freeze money in transit.
- Report to SEBI through its SCORES complaint portal if a registered entity is involved, and report the app to the app store.
Protect your family
Warn retired parents and new investors that real brokers do not recruit in WhatsApp groups or promise fixed returns. Check any 'opportunity' together first.
Also known as: fake trading group, stock market WhatsApp scam, IPO allotment scam
Questions people ask
Are stock tip WhatsApp groups legal?
SEBI has cautioned investors against invitation-only WhatsApp groups run by unregistered persons sharing buy and sell calls, and advises dealing only with SEBI-registered intermediaries.
How do I check if a stock adviser is SEBI registered?
Search for the name or registration number in the intermediaries list on sebi.gov.in. Be careful of people using fake registration numbers.
The trading app shows profits but won't let me withdraw. What now?
This is a common sign of a fake platform. Stop paying, save all evidence, and report at 1930 or cybercrime.gov.in.