Protect Yourself from Trading Scams: Tips and Advice
A 45-year-old man from Navi Mumbai in Maharashtra allegedly lost Rs 1.06 crore after being lured into share trading for good returns, police said on Thursday. The accused contacted the man, who has an engineering unit in the Taloja area of Navi Mumbai, and lured him into share trading while assuring good returns, senior police inspector Gajanan Kadam told news agency PTI.
Over the last two months, the man transferred Rs 1,06,28,000 to different bank accounts through online mode. But when he did not get the returns and his invested amount, he approached the police, the official said. Based on his complaint, a case was registered against four persons under relevant provisions of the Indian Penal Code and the Information Technology Act, the police added.
Protecting Yourself from Trading Scams
Protecting yourself from trading scams involves several steps to ensure your safety and security:
| Steps | Details |
|---|---|
| Invest Time in Learning | Learn about the stock market, trading practices, and various investment instruments. |
| Choose a Reputable Broker | Select a registered and reputable broker recognized by SEBI. Verify registration details. |
| Avoid Unregistered Platforms | Stay away from unregistered or unauthorised trading platforms, especially those promising high returns with minimal risk. |
| Exercise Caution on Social Media | Be cautious while taking inputs on social media platforms. |
| Conduct Due Diligence | Research the company, its background, financial health, and regulatory compliance. |
| Scrutinise Terms and Conditions | Review fees, risks, and terms associated with the investment. |
| Ensure Security | Use a secure trading platform or brokerage firm for transactions. |
| Avoid High-pressure Sales | Be wary of promises of guaranteed returns or high-pressure sales tactics. |
| Stay Informed | Keep updated with news, trends, and regulatory changes. |
| Seek Professional Advice | Consider seeking advice from qualified financial advisors before making investment decisions. |
| Report Suspicious Activity | If you encounter any suspicious activity, report it to the appropriate authorities. |
Following these steps can help you avoid falling victim to trading scams and protect your investments. Remember to stay vigilant and informed in the ever-evolving landscape of financial markets.