PSX warns of fraudulent WhatsApp investment groups

September 13, 2024 (MLN): Pakistan Stock Exchange Limited (PSX) has issued an investor alert regarding the surge in fraudulent activities promoted through social media and WhatsApp groups under the guise of investment advices and training courses.

The scammers may misuse the name of the registered professionals or claim to be affiliated with a legitimate company to lure investing public to participate in unauthorized investment schemes, it said in a notice.

These fraudulent groups and media pages demand fees from individuals to grant them membership, promise exclusive access to insider tips and provide training on investments.

The major suspicions include requests to transfer money to a private or third-party account, promises of exorbitant profits, claims of no or minimal risk and promises of providing valuable investment tips.

To avoid becoming a victim of such types of scams, the investing public are warned to be wary and alert of unsolicited investment advices received through messages/e-mails and other social media platforms including popular applications such as WhatsApp.

To stay safe from possible scams, the PSX has advised to take the following precautions:

• Background check and verification: Make sure that you are dealing with the licensed professionals and entities by conducting research from PSX and SECP websites. Do not blind trust the information received from a supposed investment professional or social media platform.
• Do not share information: Do not share personal or financial information such as username, password, or bank account information with unknown persons or unverified sources. Be extra cautious if you are asked to share information to a personal email address or mobile number, or to send money directly to the individual or a third party.
• Be alert to red flags of fraud: Be particularly wary if someone promises guaranteed fixed return or exorbitant returns with minimal or no risk. If someone persuades you for investment that is neither being looked for nor suits the investor profile or compels you to transfer money or invest quickly, it can be critical indicator of fraudulent activity.
• Do not fall for unsolicited investment advice: Be cautious from urgently responding/reacting to any unsolicited messages or engaging in activities offering unsolicited advice on investments without confirming their authenticity. Engaging with unverified entities/ groups may lead to significant financial losses.
• Check URLs and e-mails addresses: Scammers often use e-mail addresses or URLs similar to registered firms. Poor spelling and grammar in messages, account names, or URLs can be a sign of a scam. Always watch out for spelling mistakes in URLs and emails before opening any attachment or clicking on any links received through social media platforms.
• Research before investing: Conduct your own research, go through the relevant company’s financials and perform proper due diligence before opting for such investment opportunity.

PSX has also advised investors to regularly visit the official websites of SECP, PSX, CDC and NCCPL in order to keep themselves updated and make well-informed and prudent investment decisions.

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