2 weeks ago
Just Pause: Slowing Down Can Help Avoid Investment Scams
Some bad people try to trick others into giving them money by pretending to offer investments that will grow the money.
They create fancy websites, fake profit screens and groups on apps like WhatsApp and Telegram.
They also use tricks to make people feel excited or scared, like saying an offer is only available for two hours.
At first, they may even let people take out a little money so it seems real, and then they push for bigger payments.
Experts say it is not about being uneducated—anyone can be tricked when they feel hopeful or afraid of missing out.
Scammers can also make a person feel silly about leaving an investment after putting in money, so the person keeps paying.
To stay safe, experts recommend pausing for a whole day before paying any money.
Checking with a trusted adult and verifying that the company is registered with SEBI is very important.
Real investments do not need you to decide right away, and nobody should ever ask for secret codes like OTPs.
Investment scams have become increasingly sophisticated, using fake trading platforms, professional-looking websites, WhatsApp and Telegram groups, fabricated profit screenshots and AI-generated identities.
Experts say scammers exploit emotions such as trust, hope, FOMO and authority bias, rather than financial illiteracy, to make people vulnerable.
Fraudsters often display fake profit dashboards and allow small early withdrawals to build trust before pressuring victims to invest larger amounts.
Sunk-cost thinking can trap victims into continuing to invest even after warning signs emerge, according to psychologists.
Experts recommend pausing for 24 hours, verifying registration with SEBI, and treating 'digital arrest' threats from callers posing as police, CBI, Enforcement Directorate or Reserve Bank of India officials as scams.
- Who
- Financial experts and psychologists, including cyber psychologist Nirali Bhatia, Vaibhav Koul of Protiviti and Kinjal Shah of the Bombay Chartered Accountants Society, advising investors in India.
- What
- A guide to recognising and avoiding sophisticated investment scams through emotional awareness, verification and a pause before paying.
- Where
- India, where scammers target investors through digital platforms such as WhatsApp and Telegram.
- When
- No specific date is given; the article notes SEBI has repeatedly cautioned the public this year about such scams.
- Why
- Scammers exploit human emotions such as trust, hope, FOMO and urgency to pressure victims into transferring money quickly.
Key facts
- Key advice
- Pause, verify, invest
- Cooling-off period
- 24 hours before acting on an investment offer
- Main scam tactics
- Promises of high returns, urgency and fake profits
- Common scam channels
- Fake trading platforms, cloned websites, WhatsApp and Telegram groups
- Verification
- Check SEBI registration and SEBI's verified UPI handles before paying
- Regulator
- Securities and Exchange Board of India (SEBI)
- Digital arrest
- Not a legal concept under Indian law
- Internal warning signs
- Urgency, secrecy, and believing 'everyone else is making money'
Quotes
Nirali Bhatia
Cyber and counseling psychologist
“"SEBI has repeatedly cautioned the public this year against unsolicited investment tips on WhatsApp and Telegram, and against fraudsters who forge its letterheads and registration numbers."”
indianexpress.com
“"The new‑age investment scam doesn’t look like a scam. It looks like a sophisticated investment opportunity."”
indianexpress.com







