: Cyber Talk: Dont make a bad trade! #IndiaNEWS #Columns With the increasing use of internet-based information, more people are using the internet and social media to help in investment decisions.

Cyber Talk: Dont make a bad trade! #IndiaNEWS #Columns
With the increasing use of internet-based information, more people are using the internet and social media to help in investment decisions. Scammers quickly adapt to new ways to cheat people who are looking for investments in online trading.
Many advertisements keep popping up on social media platforms, with takeaways such as free brokerage, easy-to-trade portals and instant settlements. Many of these agencies arent registered, but put up fancy advertisements that are more powerful than those of official corporate trading companies.
Beginners find the exchange process difficult and end up registering on these bogus apps and websites, looking at flashy advertisements and following social media influencers who claim to have made money by depositing money in a training app or website. They are then asked to deposit money into the apps wallet in exchange for points, which might later be used for trading. The money put into the web wallet of the portal winds up being locked, leading to a dead end.
Few schemes used by scammers:
• Ponzi Scheme Its an investment fraud that usually pays existing investors with money collected from new (future) investors
• Pump and Dump Scheme An investment fraud where advisers try to pump (inflate) prices of shares through misleading information to investors. They then sell (dump) their shares (when they are good value) and get good returns and vanish into thin air
• App-based Schemes Scammers trick investors through fake websites appearing to be legitimate and use fake apps (not in App Store / Play Store) and send phishing emails showing fake images of wallet balances to lure them to invest in cryptocurrencies, stocks or e-commerce products.
Scams in online trading on social media:
Investors use social media platforms such as Facebook, Twitter, Telegram, WhatsApp and YouTube to gather information on investment trends, research stocks and quick earning opportunities through online trading. Below are some techniques which scammers use to persuade investors.
• Scammers claim to be successful traders offering guaranteed returns and trading advice
• Scammers use fake testimonial YouTube videos made by social media influencers
• Scammers disseminate false information through platforms like Twitter and Facebook to hold out ‘pump and dump’ activities
• Sending online investment tips and fake endorsements about online investment with fake information
• Displaying screenshots of their purported stock portfolio so as to extract a subscription fee in exchange for stock recommendations or investment advice
• Scammers take registration fees for workshops with a promise to make investors technical analysts or trading experts but do not host them
Modus operandi
• Step 1 Victims are requested to join WhatsApp / Telegram groups
• Step 2 They are asked to download apps via links, get a joining bonus that shows up in their wallet
• Step 3 Trading happens (victims are asked to perform tasks), i.