3 things investors should do to avoid online investment scams

Online investment scams are becoming very common these days. While the Securities and Exchange Board of India (SEBI), which regulates the capital markets, has taken several steps to ensure investors are protected from online investment scams, investors should take some steps on their own to avoid falling prey to scamsters.

In a release on Thursday, November 6, 2025, SEBI advised investors to "exercise extreme caution" and follow the steps below while investing through any platform or interacting with any investment proposal of advertisement seen online:

1. Verify registration of entities before investing

2. Carry out transactions only through authentic trading apps of SEBI-registered intermediaries after verification at https://investor.sebi.gov.in/Investor-support.html

Investors should not engage with any trading app that is not registered with SEBI.

3. Use “Validated UPI Handles” (“@valid” UPI IDs of SEBI-registered investor-facing intermediaries) and the “SEBI Check” platform by visiting https://siportal.sebi.gov.in/intermediary/sebi-check or through the Saarthi app, for secure investor payments.

Meanwhile, SEBI has formally communicated with major social media platforms and internet search engine providers, urging them to implement robust mechanisms to prevent the misuse of their platforms for fraudulent activities.

"This initiative aligns with the global call to action by the International Organization of Securities Commissions (IOSCO). In its statement on May 21, 2025, IOSCO highlighted the critical role of platform providers in combating online harm and urged them to enhance efforts to reduce the risk of financial harm to investors," SEBI said.

The release further stated that SEBI supports IOSCO's recommendations, and to address these challenges decisively, SEBI has called upon the platforms to immediately prioritize and fast-track the following measures for the Indian market:

Mandatory Advertiser verification in the securities market domain: Implementing a verification process to ensure that only SEBI-registered entities can advertise investment products and services.

Verified status through clear labelling of registered intermediary apps: Introducing a distinct label for authentic, regulated trading applications available on app stores to help investors differentiate them from fraudulent apps.