In a LinkedIn post, Gaurav Seth, CEO of 5paisa, an online trading platform, has exposed a sophisticated fraud ring impersonating 5paisa to lure investors into fake stock trades. The scam mimics legitimate trades and plays on investors’ fear of missing out (FOMO) on ‘lucrative’ share trades’.
Seth wrote in his post that the fraudsters are distributing fake investment tips, doctored trading charts, and counterfeit ID cards to dupe unsuspecting investors into transferring money based on phantom trades.
“Classic trap alert. Someone reaches out or adds you to a group, tells you they are from 5paisa, shares fake documents and tips… creates FOMO on missing out… and separates you from your money. Please stay away. There is no free lunch in life,” he wrote.
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The post includes screenshots of the scam materials: edited price charts showing sharp gains, what appears to be a WhatsApp broadcast group, and an identity card bearing the 5paisa name, all fabricated.
The trick is similar to what the fraudsters typically employ to lure gullible investors: show fake profits, build urgency, and promise access to the next “multibagger.” Victims are lured into moving funds, often into personal bank accounts under the guise of “pre-market deals” or “private placements.” The amounts are not insignificant, several cases report losses running into lakhs.
Incidentally, the National Payments Corporation of India (NPCI) recently issued a broader advisory warning about rising investment frauds. These include fake trading apps, deepfake customer testimonials, and job-offer scams.
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One common set-up includes scammers posing as brokers, showing manipulated dashboards and unreal profits. Victims are baited into “investing” through counterfeit platforms. Withdrawals are blocked once larger sums are transferred. In another, low-volume stocks are pitched at a “discount,” but the payments are funneled to untraceable accounts.
But the use of a real financial brand to con people only makes it difficult for investors to gauge the real threat.
“This is social engineering at scale. They mimic tone, design, even grammar. Most people don’t double-check credentials on a WhatsApp message,” said a cybersecurity analyst who asked not to be named.
