Nithin Kamath, the co-founder and CEO of Zerodha, has voiced concerns about the growing menace of WhatsApp investment scams that are trapping investors by impersonating trusted financial brands. In a post on social media, Kamath detailed how these scams operate and urged people to stay alert.
Kamath explained that among all types of investment frauds, WhatsApp-based scams have claimed the most victims in recent times. The modus operandi is simple yet highly deceptive. Scammers add people to WhatsApp groups with names like "Zerodha Elite Traders" or "Premium Investors Club."
These groups use Zerodha's logo, brand colors, and even fake Sebi registration numbers to appear legitimate. The group admins often impersonate Zerodha founders like Nithin or Nikhil Kamath, other senior leaders, or employees.
Once added, the group chat is quickly flooded with fake screenshots of 100–200% intraday trading profits and glowing testimonials.
The scammers then pitch "premium trading signals" and lure members to download a fake trading app that closely mimics Zerodha's popular trading platform, Kite.
The trap is set when users deposit money into the fake app, which then shows imaginary profits on the dashboard. However, when investors attempt to withdraw these so-called profits, they are asked to pay processing fees, taxes, and verification charges. Once additional payments are made, the scammers simply disappear with the money.
Kamath reiterated that Zerodha does not provide stock tips, investment advice, or run any WhatsApp or Telegram trading groups. All legitimate communication from Zerodha is done only through its verified channels. He urged users to share this warning with friends and family to prevent more people from falling victim to such scams.
Investment frauds have evolved sharply in the digital age, using sophisticated impersonation tactics. Experts say that investors must stay cautious, verify sources independently, and avoid responding to unasked financial advice on social media.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Kamath explained that among all types of investment frauds, WhatsApp-based scams have claimed the most victims in recent times. The modus operandi is simple yet highly deceptive. Scammers add people to WhatsApp groups with names like "Zerodha Elite Traders" or "Premium Investors Club."
These groups use Zerodha's logo, brand colors, and even fake Sebi registration numbers to appear legitimate. The group admins often impersonate Zerodha founders like Nithin or Nikhil Kamath, other senior leaders, or employees.
Once added, the group chat is quickly flooded with fake screenshots of 100–200% intraday trading profits and glowing testimonials.
The scammers then pitch "premium trading signals" and lure members to download a fake trading app that closely mimics Zerodha's popular trading platform, Kite.
The trap is set when users deposit money into the fake app, which then shows imaginary profits on the dashboard. However, when investors attempt to withdraw these so-called profits, they are asked to pay processing fees, taxes, and verification charges. Once additional payments are made, the scammers simply disappear with the money.
Kamath reiterated that Zerodha does not provide stock tips, investment advice, or run any WhatsApp or Telegram trading groups. All legitimate communication from Zerodha is done only through its verified channels. He urged users to share this warning with friends and family to prevent more people from falling victim to such scams.
Investment frauds have evolved sharply in the digital age, using sophisticated impersonation tactics. Experts say that investors must stay cautious, verify sources independently, and avoid responding to unasked financial advice on social media.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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