NPCI's Call For Digital Safety: Protect Yourself From Investment Frauds

Investment fraud is the most deceptive type of financial crime, depending significantly on social engineering techniques to trick individuals into losing their money. Con artists pretend to be money experts, forge endorsements, or even create false videos of influencers in a bid to be believed. They promise high returns and exclusive deals and then disappear after taking money from people. With technology evolving, so do scams, and therefore awareness is the best protection. The National Payments Corporation of India (NPCI) has asked individuals to be cautious and verify before investing. The following are some of the most common investment scams and how to avoid them.

1. Fake Trading Websites and Apps

Scammers create dummy investment apps or websites that impersonate legitimate brokerage firms, fund houses, or exchanges. Such websites show counterfeit returns to invite the investor to make a deposit. Once a substantial amount of money is deposited, victims become blocked from cashing out money or find that the site disappears overnight.

How to stay safe:

• Verify the site on SEBI, RBI, or official financial regulator websites

• Avoid apps downloaded from unofficial portals

• Exercise caution when receiving unfamiliar returns on unknown platforms

2. Stock Schemes with Wonderful Discounts

Fraudsters offer fairly unknown shares with an undertaking of advance booking at very nominal rates. They insist on money to be transferred to private accounts instead of to the original brokerage house accounts, which is a signal of a scam. Such scammers collect huge amounts of money under the guarantee of good returns for profitable deals.

How to stay safe:

• Deal with registered stockbrokers and investment houses only

• Never transfer money to personal accounts for the purchase of shares

• Confirm stock listings and history of trade on legitimate exchanges

3. Job Scams with Investment Hooks

Under the cover of job offers, fraudsters ask victims to send documents or write-ups for verification. They then ask for nominal fees to verify the transaction. Slowly, victims are led to pay more money, losing money in a fake hiring process.

How to stay safe:

• Never pay in advance for job offers

• Verify company data through official websites and LinkedIn profiles

• Avoid job opportunities that require financial investments

4. Ponzi and Pyramid Schemes

These scams provide extremely high returns but function by repaying earlier investors with funds from newer investors, rather than generating real profits. They collapse when new investments cease, and most investors lose a great deal of money.

How to stay safe:

• Be cautious of opportunities that promise "guaranteed" or unreasonably high returns

• Check whether the investment offer is registered with the financial authorities

• Avoid businesses that require enrolling other individuals to earn profits

5. Pressure Investment Tactics

Scammers force individuals into making quick investment decisions by creating a perception of urgency. They claim the offer is time-sensitive or limited, pushing individuals to make decisions without detailed research.

How to stay safe:

• Do not make impulsive financial decisions

• Consult a certified financial expert before investing

• Avoid investments that are not properly documented or legally backed

6. Impersonation of Financial Experts

Scammers impersonate well-known financial experts, adopting social media, fake websites, or WhatsApp groups to gain credibility. They may generate false endorsements or false online reviews to present themselves as credible.

How to stay safe:

• Verify credentials of financial advisors from authentic sources

• Avoid investment advice from unknown social media profiles

• Confirm claims made in promotional material to financial regulators

Reporting Investment Scams

When you suspect an investment scam, report it to the police immediately. You can dial 1930 to reach the national cybercrime helpline or file a complaint through the Department of Telecommunications (at https://sancharsaathi.gov.in/sfc/). Save messages, and screenshots, and capture conversations to help with the investigation.Investment frauds are becoming more sophisticated, but staying informed and aware can prevent you from financial losses. Always research before investing, avoid unsolicited investment offers and never share personal banking details. NPCI’s call for digital safety is a reminder that awareness is the first step in protecting yourself from financial fraud