Fake trading apps: 12 warning signs and what to do

How the scam usually works

1. 1You are added to a WhatsApp or Telegram group, often after an ad featuring a well-known investor or company.
2. 2The group shares "tips" and screenshots of profits. Other members (who are part of the scam) praise the results.
3. 3You are asked to install an app from a link, or to open a website, and deposit money to a bank account or UPI ID.
4. 4The app shows large profits, so you add more money.
5. 5When you try to withdraw, you are asked to pay a "tax", "fee" or "margin" first. The money is never returned.

12 warning signs

• The app comes from a link or APK file, not from a registered broker's official listing.
• The company name is not in SEBI's list of registered stock brokers, or it copies a real broker's name with a small change.
• You are asked to pay into a personal account, or an account in a different company's name.
• The payee name changes from one deposit to the next.
• It promises fixed or guaranteed returns, or daily profits.
• It offers "institutional accounts", "IPO allotment at a discount" or "block deals" for retail investors.
• You cannot see your holdings in your own demat account (CDSL or NSDL statement).
• No contract notes arrive from the exchange-registered broker by email or SMS.
• Withdrawals need an extra fee, tax or deposit first.
• Support is only on WhatsApp or Telegram, with no office address or SEBI registration number.
• You are pushed to act fast: "only today", "last slot".
• The group admin's number is foreign or changes often.

Check before you install

• Find the broker on SEBI's Recognised Intermediaries list and on the NSE or BSE member list.
• Open the app from the link on the broker's official website, not from a message.
• Confirm that your trades show up in your demat account and that you receive contract notes.
• Pay only to an account in the broker's own registered name. Look for SEBI's validated "@valid" UPI handle.

If you have already paid

• Stop paying. Any "fee to withdraw" is part of the scam.
• Call 1930 (national cybercrime helpline) immediately and file a report at cybercrime.gov.in.
• Tell your bank at once and ask them to raise a dispute on the transfer.
• Save chats, numbers, app links, account details and receipts.
• Be careful of "recovery agents" who promise to get the money back for a fee. That is often a second scam.

Common questions