Zerodha co-founder and CEO Nithin Kamath has taken to social media to warn investors about the rising threat of fake trading app scams. His message serves as a timely reminder for individuals to exercise caution when investing. Kamath’s social media post highlights the prevalence of fraudulent applications that closely mimic the interfaces of reputable brokerage platforms. These fake apps lure unsuspecting victims with promises of easy profits and then disappear with their invested funds.
In a post shared on X (formerly known as Twitter), Kamath emphasise on the importance of investor awareness. He urges individuals to be suspicious of unsolicited investment offers.
Read the post here
“These fake app and website scams keep getting worse and worse. Not a day goes by where I don’t read about such scams or hear from people who’ve been affected. The scale of these scams is just insane.
There are now countless phishing scams that take advantage of the familiarity of all major brands, celebrities, etc. The tricks vary—fake apps, fake websites, fake social media profiles, scam calls—but all with the same goal: to steal your money. We’ve discovered multiple such scams in the name of
.
These scams work because they take advantage of our emotions like hope, fear, and greed. Two simple rules that can protect you:
1. Never act in a hurry and always verify.
2. If something seems too good to be true, it probably is.
Be extremely suspicious about everything. If you’re seeing this post, you’re probably already aware of these scams, so please share this with your friends and family who might be more vulnerable.”
How to protect yourself
Investors can safeguard themselves by:
- Verifying the legitimacy of any investment platform before depositing funds.
- Being wary of unsolicited investment offers, especially those promising quick returns.
- Conducting thorough research on any investment opportunity before committing any money.
- Only investing through licensed and regulated financial institutions.