Beware of Scams: Tips for safely investing in the digital world

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Financial Planning: 4 experts share tips on how to plan your finances for 2024 Another channel to dupe new investors for money is to feed them with tips through social media platforms. Many times, investors are sent messages and they are introduced to a free social media handle or channel. Sometimes scamsters claim that these are run by successful traders, which is not the case.

Gradually, investors are duped by selling them subscription packages by charging hefty fees. In some cases, such handles dump rigged-up stocks on gullible investors. There are instances where investors have given the scamsters access to their trading accounts and have lost money.

Successful traders and investors whose names are used to peddle tips through these channels may have no clue about this. Hence, investors need to be extra careful while using the social media platforms. Investors need to check if there is a connection between a successful trader whose name is being used and the services on offer.

Also, check if a person has the necessary license to carry out advisory services. Only, SEBI-registered entities can offer services such as money management, advisory or financial services distribution. There must be a written contract between an investor and the service provider for such services.

Also Read: How fund houses adapted to market valuation change There is no free lunch in the world. So, free advice given by many social media channels and influencers must be looked at with utmost caution. Financial advice can be given by the SEBI-Registered Investment Advisors (RIAs) after taking into account customer-centric aspects such as their financial goals and risk profile.