Investment scams are on the rise, with fraudsters implementing new strategies to target individuals and exploit their financial goals. Many investors have been deceived by these scams, which resemble official branding and offer high returns. Nithin Kamath, a co-founder of Zerodha, warned investors and provided information about how these frauds operate.
In a tweet, Kamath stated, "Among all investment scams, the WhatsApp investment scam has claimed the most victims." He described how scammers imitate Zerodha officials and create fake WhatsApp groups to trick people into making illegal investments.
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How Scammers Deceive Investors on WhatsApp
Kamath tweeted about how this fraud is designed to appear legitimate and reliable. Scammers create WhatsApp groups such "Premium Investors Club" or "Zerodha Elite Traders" that appear to be authentic investing clubs. They apply official-looking logos, colors and even fake SEBI registration credentials to deceive customers into thinking they are part of a reputable platform. The scammers pretend to be Zerodha employees or executives which makes it seem more credible.
Inside these groups, people are shown fake success stories and screenshots claiming returns of 100–200 per cent from intraday trading. These false stories are intended to get individuals to invest rapidly. The scammers then direct users to download a fake called Kite, which is quite similar to Zerodha's official platform. After users deposit money into the app, it shows them fake gains, leading them to assume that their investments are increasing while, in reality, they are being defrauded.
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When users try to withdraw their profits, they are asked to pay extra fees like processing charges or taxes. This is just a way to make more money before the scammers disappear, leaving the victims without their money.
He also clarified that Zerodha does not provide unsolicited stock tips, investment advice, or operate WhatsApp/Telegram trading signal groups. The company has made it clear that all official communication comes solely through verified channels. Kamath emphasized the need of verifying the validity of any investment advice and urged investors to exercise caution when dealing with unofficial sources to avoid falling victim to frauds.
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He also advised users to share this warning with their friends and family to help prevent additional individuals from falling victim to these scams. Sharing the information can help raise awareness and protect others.
