In this guide
Investment frauds increasingly begin with something that appears harmless: a stock-market tip, a LinkedIn message, a WhatsApp group, a work-from-home task or even a small ₹200 payment.
One common lure is a person claiming to have an algorithm capable of predicting whether shares will rise or fall. After apparently making several correct predictions, the fraudster gains the victim’s confidence and eventually asks them to transfer money to a special account or fake investment app.
SEBI specifically warns investors against guaranteed or near-certain returns, unregistered entities, unusually high returns and pressure to invest immediately.
Scam 1: “I Can Predict Tomorrow’s Stock Price”
A fraudster may contact hundreds of people and send different market predictions to different groups.
Some recipients will inevitably receive predictions that turn out to be correct. The fraudster then continues communicating only with those people, creating the illusion of extraordinary forecasting accuracy.
After several apparent successes, the victim may believe the person has:
- An advanced trading algorithm;
- Insider information;
- Institutional market access; or
- A secret strategy unavailable to ordinary investors.
The real objective is usually to build enough trust for the victim to transfer money.
SEBI advises investors not to rely on unsolicited stock tips and to verify whether a person offering securities-market advice is properly registered.
Scam 2: Fake Trading or Mutual Fund App
The next stage can involve an app or website that appears to show genuine investment returns.
The victim deposits ₹1 lakh, for example, and the dashboard may soon show ₹1.20 lakh or ₹1.50 lakh.
But the figures on the screen may have no connection with any real securities investment.
A major warning sign appears when the victim tries to withdraw money and is told to pay:
- Additional tax;
- Withdrawal charges;
- Security deposits;
- Account-unfreezing fees;
- Margin money; or
- Another investment amount.
Difficulty withdrawing money is itself identified by SEBI as a major investment-scam warning sign.
Never transfer investment money merely because an app displays profits.
Scam 3: WhatsApp or Telegram ₹200 Task Scam
Another extremely common fraud begins with a supposed work-from-home opportunity.
The victim may be asked to:
- Follow a WhatsApp channel;
- Like a YouTube video;
- Rate a restaurant;
- Post a Google review; or
- Submit screenshots after completing simple tasks.
The fraudsters may actually pay ₹100, ₹200 or ₹500 for the first few tasks.
That initial payment is intentional.
The Ministry of Home Affairs has officially described this exact modus operandi. Fraudsters approach victims through advertisements or WhatsApp/Telegram, pay a small commission for tasks such as video likes or ratings, and later persuade them to invest larger sums for higher returns. Once substantial money is deposited, the victim loses access to the funds.
Why Does the ₹200 Payment Work?
It converts suspicion into trust.
Before receiving the money, the victim thinks:
“This may be a scam.”
After ₹200 arrives, the thought changes to:
“They actually paid me, so the company must be genuine.”
The victim is then moved through multiple WhatsApp or Telegram groups where other accounts may post screenshots showing large profits and thank the supposed investment manager.
Those messages should not be treated as independent evidence. Fake participants and fabricated profit screenshots can easily be used to manufacture social proof.
Can Receiving ₹200 Get Your Bank Account Frozen?
The answer requires an important qualification.
Receiving ₹200 from an unknown person does not automatically mean your entire bank account will be frozen.
However, money used in cyber fraud frequently moves through multiple accounts. The Ministry of Home Affairs has specifically warned that people should avoid transactions with unknown accounts because such accounts may be connected with money laundering and can lead to account blocking or legal action.
RBI has also long warned about money mule accounts—accounts used to receive and transfer criminal proceeds, sometimes after the account holder is recruited through online jobs or social media. Such accounts can face suspension and investigation.
Therefore, do not knowingly receive and forward money for unknown online operators in exchange for a commission.
For legal assistance where a bank account is frozen or a cyber-fraud dispute arises:
How to Verify an Investment Adviser in 2026
Before acting on stock-market or investment advice received through social media, check whether the adviser or intermediary is genuinely regulated by SEBI.
In February 2026, SEBI also introduced requirements relating to disclosure of registered names and registration numbers by regulated entities and their agents on social-media platforms.
Treat these as major red flags:
| Red flag | Why it matters |
|---|---|
| Guaranteed stock returns | Securities returns cannot legitimately be guaranteed |
| “Secret algorithm” claims | Often used to manufacture credibility |
| WhatsApp/Telegram investment group | Common fraud channel |
| Payment to personal bank/UPI account | May indicate an unauthorised operator |
| Unknown APK/app download | May be fake or malicious |
| Profits visible but withdrawal blocked | Classic investment-fraud warning |
| More payment demanded to release funds | Do not keep paying to recover earlier money |
What to Do Immediately If Money Has Been Lost
Speed matters in financial cyber fraud.
The Government’s National Cyber Crime Reporting Portal directs victims of cyber financial fraud to call 1930 immediately. Complaints can also be registered through the National Cyber Crime Reporting Portal.
As of 30 June 2026, the Government reported that the financial-fraud reporting system had helped save more than ₹11,158 crore across over 32.80 lakh complaints.
Preserve:
- Bank and UPI transaction details;
- WhatsApp/Telegram chats;
- Phone numbers;
- Fake-app screenshots;
- Website addresses;
- Payment receipts; and
- Names/account details given by the fraudsters.
Do not delete the conversation immediately after discovering the fraud.
For financial-risk and investment planning:
Frequently Asked Questions
Can someone genuinely guarantee stock-market returns?
No legitimate securities-market intermediary should promise guaranteed or near-certain investment returns. SEBI specifically identifies such claims as a scam red flag.
Is a trading app genuine because it shows my balance increasing?
No. A dashboard can display fictitious profits. Verify the intermediary and whether the investment actually exists through recognised channels.
Is the ₹200 work-from-home task genuine?
Small initial payments are a documented technique used in task-based cyber frauds to gain trust before asking for larger deposits.
What should I do if someone asks me to transfer money to a personal UPI account for investing?
Do not transfer funds until the entity, investment product and payment channel have been independently verified.
What number should I call after an online investment fraud?
For cyber financial fraud in India, immediately call 1930 and submit the complaint through the National Cyber Crime Reporting Portal.
Can my account face problems if I receive money linked to fraud?
Potentially yes. Transactions connected with fraudulent money trails can lead to investigation or account restrictions. Receiving an unknown payment does not automatically prove wrongdoing, but the source and purpose of funds matter.
