Amid the growing menace, market regulator Securities and Exchange Board of India (Sebi) and stock exchanges including the NSE have warned investors about fraudulent organisations and individuals who are duping people through digital means and social media platforms.
Investors can mitigate these risks by following six key tips.
Don’t respond to unsolicited solicitations: Investors must remain vigilant and skeptical of unsolicited investment advice and promises of exorbitant profits. Unsolicited advice can come via email, text, phone call or through social media platforms.
Choose a legitimate investment firm: Investors should look for a legitimate investment firm and conduct background checks to find out the track record of the firm. Legitimate firms will not give unsolicited advice or lure investors with exorbitant profits.
Give preference to registered and regulated entities. Trade only with SEBI registered brokers and platforms who adhere to strict regulatory oversight and investor protection measures.
Beware of Guaranteed Returns: Investors should be wary of individuals or entities offering promising returns that seem too good to be true. Investors should understand that stock investments involve risks and market fluctuations.
Cyber threats: Cyber scams are prevalent these days and you need to stay informed about them. One way to do that is to continually educate yourself about the latest cyber threats and common methods used by scammers.
Protect your digital assets: Protecting your digital assets with an advanced, regularly updated antivirus solution is a critical investment in safeguarding your financial future against cyber threats.
Quick Heal offers a multi-layered defense strategy for investors and traders that includes real-time threat detection, web security, identity theft protection and deep scanning (scans applications before installation and continuously monitors installed apps to detect potential threats). Quick Heal Technologies is a cybersecurity solutions provider.
Related article: NSE issues warning against organisations offering daba trading and investment tips on Telegram channels and Instagram
(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. They do not necessarily represent the views of the Economic Times)
