Check the registration before you check the returns. Every large investment scam in India rests on one trick. Someone advises you, or takes your money, without being registered to do it. SEBI publishes the list of registered firms. It also lists brokers who were expelled, or whose licence was cancelled or suspended. Two minutes on that page ends most of these frauds. A profit screenshot is easy to fake. So is a group chat, and a polite caller. A live registration is not.
What do these scams actually look like?
| Scam | What you see | The check that ends it |
|---|---|---|
| Fake advisory group | A WhatsApp or Telegram group with daily “calls” and profit screenshots | Ask for the SEBI registration number and look it up yourself |
| Guaranteed return scheme | A fixed monthly percentage, paid on time at first | No registered entity may promise a market-linked return |
| Fake trading app | A slick app showing your balance growing | Try to withdraw a small amount early |
| Dividend or task fraud | Small payouts for simple tasks, then a bigger deposit request | The first payout exists only to buy your trust |
| Phishing message | A KYC, refund or blocked-account alert with a link | Never open the link — go to the app you already have |
| Impersonation of a real firm | A near-identical name, logo and domain | Compare the domain letter by letter against the official one |
The common thread is urgency. Every one of these needs you to act before you think. A genuine institution can wait an hour while you verify it.
How do you verify a SEBI registration?
Go to SEBI’s own site, not to a link the person sends you. SEBI publishes lists of recognised intermediaries, stock exchanges, clearing corporations, depositories and online bond platform providers at sebi.gov.in.
Then do the part most people skip. SEBI also lists expelled brokers and terminated depository participants. It lists licences that are cancelled, surrendered, expired or suspended. A number that once worked is not a number that works today. Check both lists.
Three more rules. A registered adviser charges a fee. It never holds your money. Money moves to your own broking account. Never to a person’s account, and never to a UPI ID. And a number alone proves nothing. It must match the exact firm name you are dealing with.
Why do intelligent people fall for this?
Because the fraud is designed around behaviour, not gullibility. It starts small. You join a group where everyone seems to be winning. Most of them work for the gang.
You are allowed to withdraw early, and successfully. That single withdrawal does more work than any promise. It converts scepticism into confidence, and the deposits get larger.
Then the exit closes. There is a tax to pay before withdrawal, or a compliance deposit, or a technical fault. Each demand is small relative to the balance you believe you hold. That is the design. The balance on the screen was never real. The fee they ask for is the only real money here.
On 17 August 2026 SEBI warned investors about live trading tips on social media. On 24 August 2026 it launched a Cyber Suraksha Portal. Both exist because this is now the common form of the scam.
What should make you stop immediately?
Any promise of a guaranteed return on a market product. Markets do not guarantee, and anyone regulated to advise you knows they may not say otherwise.
Any request to move money to a personal account, a UPI ID or a wallet. Any request to install remote access software or share a screen while you bank. Any one-time password, ever, to anyone. And any pressure to decide today because the allocation closes tonight.
Also treat unusually specific flattery as a signal. Fraud teams work from lead lists and know your name, your city and sometimes your employer. Knowing your details is not proof of legitimacy.
What do you do if you have already paid?
Move fast. Recovery depends on how quickly the receiving account is frozen. Report it on the national cyber crime portal at cybercrime.gov.in. It has a category for financial fraud.
Tell your bank in writing the same day. Ask for a written receipt with a time stamp. Do not delete the chat. Save every message, phone number, UPI ID and account number first. An investigation runs on those details.
Our guides on UPI fraud and the digital arrest scam cover the steps for your own account. You can also complain about a regulated firm through the RBI’s Sachet portal. If a broker or adviser is involved, our broker reviews page shows how to check them.
Frequently asked questions
How do I check if an investment adviser is registered with SEBI?
Look the firm up in the lists at sebi.gov.in. Then check the lists of cancelled, expired and suspended licences. Match the exact legal name, not the brand used on WhatsApp. If they will not give you a number in writing, you have your answer.
Are the profit screenshots in trading groups real?
Assume they are not. Screenshots are easy to edit. The members praising a strategy often work for the gang. SEBI’s study for FY22 to FY24 found 93% of individual traders in equity derivatives made losses. A group where everyone wins is not the same market. Our page on futures and options basics has the real spread.
Can I get my money back after an online investment fraud?
Sometimes. Only if the money is traced and frozen before it moves on. So same-day reporting to the portal and your bank matters most. Odds fall sharply once funds pass through several accounts.
Is a company promising 3% monthly returns illegal?
A registered firm may not promise a guaranteed market return. Schemes like this pay early investors from later deposits. They fail the moment new money slows. The early payouts are not proof it works. They are the marketing budget.
Someone claiming to be from my bank asked for an OTP. What now?
Hang up. No bank, regulator or payment firm asks for a one-time password. Call the number on your debit card, or in the bank’s own app. Never the number the caller gives you. If you shared it, tell your bank in writing at once.
Sources
- SEBI — lists of recognised intermediaries and of cancelled, surrendered, expired or suspended registrations: sebi.gov.in/intermediaries.html
- SEBI press releases — caution to investors on live trading strategies on social media (17 August 2026) and launch of the Cyber Suraksha Portal (24 August 2026): sebi.gov.in press releases
- National Cyber Crime Reporting Portal, Government of India: cybercrime.gov.in
- Reserve Bank of India — Sachet portal for complaints about unauthorised deposit-taking: sachet.rbi.org.in
- Our methodology and editorial policy.
Related reading
Best Budgeting Apps in India
The one rule that separates a safe budgeting app from a dangerous one: how it reads your bank data.
6 Sep 2026 · 4 min
Building an Emergency Fund
How many months of expenses to hold, where to park the money, and why the ₹5 lakh deposit insurance limit shapes the plan.
7 Sep 2026 · 5 min
Claiming a Deceased Relative’s Assets
The document trail for banks, demat accounts and insurers, and why a nominee is not an heir.
7 Sep 2026 · 5 min