Whatsapp investing scams: Red flags to watch out for
investors with the promise of making a quick buck. Investment groups created on Whatsapp and Telegram are now misappropriating identities of established brands and reputed professionals to lure individuals into bogus stock tips and trading courses.
This writer received the following invite via Whatsapp, purportedly from a renowned fund house some time ago: “As PGIM Global Funds celebrates its fifth anniversary in India, we are celebrating through an online event with the aim of repaying the support and love of Indian investment enthusiasts. This group will share high-quality investment portfolios and selected stocks for free every day, leading everyone to make money. Students can follow our news every day and verify our strength!”
This modus operandi is now very common. Fraudsters try to lure investors by masquerading as reputed individual fund managers, financial advisers and even finfluencers. Investment scams are being run in the name of expert investors like Porinju Veliyath and Ajay Kacholia, among others. The use of such reputed names gives a sense of legitimacy to the entire operation. Santosh Joseph, Founder, Germinate Investor Services, “These scamsters prey on investors’ appetite for stock tips, particularly coming from star names.”
For instance, one such group ‘Federated Hermès’ misappropriated the identity of renowned fund manager Pankaj Tibrewal to conduct stock market classes and send messages in Whatsapp groups. The Whatsapp message read, “Mr Pankaj will recommend daily limit stocks to all
