Beware of Investment Scams on Social Media: Kotak Securities Issues Advisory

Investment scams on social media platforms are becoming increasingly prevalent, prompting companies like Kotak Securities Limited (KSL) to issue public advisories for investors. The scams, which are active on platforms like WhatsApp, Telegram, Facebook, and Instagram, are luring individuals with fraudulent stock advice and trading classes.

According to KSL, investors should exercise caution and refrain from conducting any financial transactions or investments over these platforms without verifying the legitimacy of the entities involved. Shripal Shah, MD & CEO of Kotak Securities, emphasized the importance of following official channels for genuine and trustworthy investment-related information.

The fraud operates through various stages, including the use of renowned investors’ profiles and qualifications to attract unsuspecting individuals. Shah warned investors about the risks associated with investments offering high returns, highlighting the potential for fraud and the lack of guaranteed returns in the securities market.

Similarly, HDFC Securities Limited also issued a warning to its investors about fake WhatsApp groups pretending to be the company. Sandeep Bhardwaj of HDFC Securities stressed the importance of vigilance against fraudulent activities and the need to verify the authenticity of any communication claiming to be from the company.

Both companies advised investors to be cautious and conduct thorough research before making any investment decisions. With the rise of investment scams on social media platforms, it is crucial for investors to remain vigilant and avoid falling victim to fraudulent schemes promising guaranteed returns in the stock market.