‘In fake world, people are losing tonnes of money’: SEBI chief Tuhin Kanta Pandey on WhatsApp, Telegram investment scams
Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey has warned investors against fraudulent investment recommendations circulated on platforms like WhatsApp and Telegram, saying people are losing large sums of money by trusting misleading claims.
Speaking at NDTV Profit Ignite on Wednesday, Pandey said that SEBI would take tough action against malpractice involving groups that lure investors with promises of exceptional or guaranteed returns.
“It's a fake world. In that fake world, you know, people are believing and losing tonnes of money,” Pandey said.
Pandey's remarks came amid concerns about investment-related fraud on messaging platforms, where potential investors and even ordinary people receive messages promising unusually high or guaranteed returns.
The SEBI chief said the regulator would deal firmly with such malpractice. He also asked investors to verify the authenticity of financial entities before transferring money.
As part of its efforts to protect investors, SEBI has introduced SEBI Check, a tool that allows users to verify whether a bank account, Unified Payments Interface (UPI) address or QR code is linked to a regulated entity in the securities market.
Pandey said investors could use the facility to conduct these checks before making payments, helping them verify the recipient's details.
Pandey also highlighted SEBI's collaboration with Google to display verified labels for trading applications on the Google Play Store in India.
The initiative aims to help users identify verified trading apps, while the regulator is also taking action against misleading financial influencers.
Earlier in July this year, the Ministry of Home Affairs (MHA) warned investors about investment scams being carried out via WhatsApp and Telegram, ANI reported.
Investigators in the Indian Cyber Crime Coordination Centre (I4C) wing of the MHA warned that fraudsters are creating fake investment groups and posing as market experts or representatives of financial firms. The users are enticed with “tips” about stocks, false trading success stories and unusually high or guaranteed returns.
Such scams often begin with inviting unsuspecting investors to join WhatsApp or Telegram groups through links. These groups then offer investors "investment tips" and "exclusive opportunities", using fabricated profits from fake trading apps to gain their confidence, and repeatedly persuade them to invest more money.
These fraudsters prevent victims from withdrawing their funds and often demand additional money for "taxes, processing charges or account verification". The victims are then pressured to deposit more sums to recover their original investment.
They have cautioned the public not to trust investment advice shared in unknown WhatsApp or Telegram groups.
Prabhakar Jha is a journalist and digital news editor with nearly a decade of experience in online media, specialising in breaking news, politics, national affairs. Having built his career across fast-paced digital newsrooms, he has developed a reputation for delivering accurate, timely, and reader-friendly stories while leading editorial teams during high-pressure news cycles. In 2026, he joined LiveMint as a Digital Content Producer. <br><br> A postgraduate in History from the University of Delhi, Prabhakar combines strong editorial judgment with a keen interest in public policy, governance, economics, and global affairs. Before joining LiveMint, he worked with leading digital publications, including News9Live and The Times of India, where he handled breaking news, copy editing, headline writing, live coverage, and newsroom coordination. <br><br> Beyond the newsroom, Prabhakar is passionate about long-form writing and storytelling. He has a particular interest in global affairs. An avid reader with a love for literary fiction, he also enjoys blogging, poetry, and working on creative writing projects.
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