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Stock market fraud on the rise: 6 ways to protect yourself

Stock market fraud on the rise: 6 ways to protect yourself

 


Even though online stock frauds have become commonplace, investors and traders are advised to remain vigilant for potential threats and scams that target unsuspecting individuals through various tactics and financially drain victims.

Amid the growing threat, market regulator Securities and Exchange Board of India (Sebi) and stock exchanges including NSE have warned investors about fraudulent entities and people scamming people through digital means and social media platforms.

Investors can mitigate these risks by following these 6 important tips:

  1. No to unsolicited offers: Investors should remain vigilant and treat with skepticism all unsolicited investment advice or promises of exorbitant returns. Unsolicited information may come from emails, messages, phone calls or social media platforms.
  2. Opt for Legitimate Investment Companies: Investors should research legitimate investment companies and do background checks to find out their track record. Legitimate companies won't send unsolicited advice or lure investors with exorbitant returns.
  3. Prioritize registered and regulated entities: Only engage with SEBI-registered brokers and platforms, which adhere to strict regulatory oversight and investor protection measures.

  4. Concerned with guaranteed profits: Investors should be wary of people or entities offering promising returns that seem too good to be true. It should be understood that stock investments involve many risks and market fluctuations.
  5. Cyber ​​threats: Cyber ​​frauds are becoming more and more prevalent these days and it is important to stay informed about them. One way to do this is to continually educate yourself on the latest cyber threats and common tactics used by fraudsters.
  6. Securing digital assets: Securing your digital assets with an advanced, regularly updated antivirus solution is an essential investment in protecting your financial future from cyber threats.

Quick Heal suggests a multi-layered defense strategy for investors and traders. These include real-time threat detection, web security, identity theft protection, and deep scanning (scans apps before installation and continuously monitors installed apps for potential threats) . Quick Heal Technologies is a cybersecurity solutions provider.

Read also: NSE issues alert against entities offering dabba trading and investment advice via Telegram channel and Instagram

(Disclaimer: The recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of Economic Times.)

Sources

1/ https://Google.com/

2/ https://m.economictimes.com/markets/stocks/news/stock-market-frauds-on-the-rise-6-ways-to-protect-yourself/articleshow/111016023.cms

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