Fake Stock Trading Apps: The Indian stock market is currently at an all-time high, with retail investors playing a crucial role. Since 2020, the number of demat accounts has grown from 4 crore to over 16 crore. Retail investors have made money in the market, but now they are being targeted by fake trading apps promising huge returns. These fake apps are becoming a major scam, and market experts are raising concerns. Nithin Kamath, founder of Zerodha, has expressed his worries about these fake trading apps on social media.
How the Fake Trading Scam Works:
Nithin Kamath posted on social media, explaining that these fake trading apps are misleading investors by making them believe that earning money in the market is very easy. Investors fall for this trap, leading to a large-scale scam. Kamath detailed how this fraud is carried out: first, investors are added to a WhatsApp group and then asked to install a fake trading app that looks similar to real brokers’ trading sites.
How the Scam is Operated:
Kamath explained that in these fake trading apps, investors might make money in a few trades initially. This builds their trust and convinces them that they can earn a lot of money. But then the real scam begins. The apps ask investors to transfer money for trading. When investors try to withdraw their money, they are asked to pay fees or taxes. Eventually, the WhatsApp group and its members suddenly disappear.
Educated People Falling for the Scam:
Kamath noted that even educated and intelligent people are falling for this scam. He advised investors to remember that if something seems too good to be true, it probably is. He stressed the importance of being skeptical of claims of easy money. Kamath also shared a video to raise awareness among investors and encouraged people to share it with their friends and family.
