YouTube, Facebook to WhatsApp: SEBI cautions against THESE four types of fraudulent activities on social media platforms | Stock Market News

Stock market fraud: With retail participation in the Indian stock market at record highs and social media usage surging, incidents of fraud have escalated sharply. In response, the Securities and Exchange Board of India (SEBI) has issued fresh advisories, urging investors to remain vigilant and avoid falling prey to these increasingly sophisticated scams.

Last year, some 150,000 people reported being victims of stock frauds, an all-time high in India, according to a Bloomberg report.

The report, citing government data, said that in 2024, there were more than 400 stock-market-linked scams reported every day, amounting to more than $1 billion lost. So far, less than 10% of that money has been recovered.

This has come at a time when there are 130 million unique trading accounts — almost triple the number five years ago, putting gullible retail investors at risk.

Four common stock market scams on social media

Against this development and to protect investor interest, SEBI has highlighted four common types of fraud relating to the securities market through social media platforms.