Harish, a youngster with a well-earning job, always wanted to enter the world of the big bulls of the stock market. So when he received a message on WhatsApp about a stock market investment with a 100% profit guarantee, he did not think twice. A few months down the line, and after losing a few lakhs of rupees, Harish feels scared even when he hears the word investment!
As usual, Harish is not alone. According to the Indian Cyber Crime Coordination Centre (IC4), transnational cybercriminals are using targeted WhatsApp advertisements to circulate fake share market group links.
Fake share or stock market group links are typically circulated via messaging platforms like WhatsApp, Telegram, or social media. These links promise access to exclusive share market groups, tips, or investment advice, often with the lure of quick financial gains. However, these groups are usually scams designed to steal money, personal information, or both.
These frauds are better known as pig-butchering, where cybercriminal gangs engage with the victim for a fairly long time to build their trust and then scam them instead of the usual 'hit and run' approach. Pig-butchering alludes to the practice of fattening a pig before slaughter, which originated in China and then went global during the pandemic.
Let us first understand what a stock market group links scam is and then we will see how to safeguard ourselves from it.
In stock market group links scams, victims are often lured with assured returns or bumper profits. Cybercriminals frequently send messages that claim to offer insider knowledge, stock tips, or guaranteed returns in stock trading and the link to join the group.
Once the victim joins the group, he or she is bombarded with fake success stories, fabricated trading reports and testimonials from other 'members' who earned big or made huge profits using the group.
At the same time, some of the members try to convince the new entrant to invest in the 'big opportunity'. These gangs push the victims to make investments, often urging them to act quickly to avoid 'losing out' on lucrative deals.
Once the victim succumbs to the pressure, he or she is asked to transfer money to unknown accounts or through methods that are difficult to trace. Depending upon the victim's 'risk-taking ability', the gang either vanishes with whatever money they receive or continues to coax the victim to invest more to earn bumper returns.
All such messages in this stock market group link scam have some red flags, especially if you know exactly what to watch out for. For example, promises of guaranteed or assured returns (100% profit) or 'insider tips' are major warning signs.
Many such messages claim to be associated with a legitimate entity or regulated financial institution, but they often are not. So, if you read a big name of a person or entity from the stock market in the message that promises assured returns, it is 100% fake.
Even if the sender is known to you, do proper homework about the 'offer' and find out everything possible from official websites (do not open any link shared in the message to know more!). And if the sender is unknown, then there is no point in engaging with him. Just block and report.
Also remember that these cybercriminals often use pressure tactics, including limited-time offers to force victims into making hasty decisions.
As with other cyber frauds, cybercriminals continue to find new ways, texts and content to hook victims to stock market group links scams. So, there is no 100% assured method to protect anyone from these scams, but here are a few suggestions that would help save yourself.
Do not click on suspicious links: Avoid clicking on links received from unknown sources, especially if they promise quick riches or exclusive investment opportunities.
Verify the source: If the invitation seems to come from a legitimate source like a financial adviser, verify it through official channels before joining any group or making any investment.
Research: Look up online reviews, feedback or comments on the investment group or platform before engaging. Scammers often leave a trail of complaints from victims.
Avoid sharing personal information: Never share sensitive personal or financial information with anyone, unless you are certain of their legitimacy.
Use security features: Enable multi-factor authentication (MFA) on messaging apps and email to add an extra layer of security. This makes it harder for scammers to gain unauthorised access to your accounts.
Report suspicious activity: Report any fake group links to the platform's administrators and notify relevant financial authorities if you suspect a scam. On WhatsApp, when you open such a message for the first time, there are options to report and block the contact. In case you are not sure, you can open the chat and go to the three vertical dots in the right-hand side upper corner. Go to 'more' and select 'Report' or 'Block' option.
Speaking about legitimate stock market investment, always remember it is not a 'fly-by-night' operation. The stock market is not for those looking for quick and bumper profit. In fact, it is for those who are interested in building wealth in the long term.
Stay Alert, Stay Safe and Don’t Lose Money!
