Legal information notice: this article provides general information and isn't a substitute for advice from a qualified lawyer.
You are added to a “VIP stock tips” group on Telegram or WhatsApp. Screenshots of huge profits fill the chat, a confident “analyst” posts calls that seem to work, and then you are nudged to put in real money — through a “special” account, an app, or a paid membership. This is the share-market group scam, and it is different from ordinary investing in one basic way: the group exists to move your money, not to grow it.
SEBI, the securities market regulator, has warned repeatedly (including in a May 2025 caution) about stock-market scams run through WhatsApp, Telegram and other social media. Its guidance describes fraudsters who send unsolicited invitations to “VIP” or “free trading course” groups, impersonate registered intermediaries or well-known public figures, promise assured or risk-free returns, and steer people into fraudulent apps. SEBI’s investor education material also explains the “pump and dump” pattern: a channel hypes a thinly traded stock, followers buy and push the price up, and the organisers sell into that demand while the price collapses.
Any new demand — a “withdrawal fee”, “tax clearance”, “unlock deposit” — is part of the scam. Paying it does not release your money.
Use the official number to report each transfer and request that further debits be blocked. Early reporting improves the chance that the receiving account can be frozen.
Report at cybercrime.gov.in or call 1930. List every payment with date, amount, UPI ID or account number.
Save the group name and invite link, the admins’ numbers or usernames, screenshots of “tips” and profit claims, app links, and payment receipts before anything is deleted.
If a SEBI-registered intermediary was involved, you can also lodge a complaint on SEBI’s SCORES portal in addition to the police report. If the group impersonated a real firm, inform that firm through its official channels too.
Do not send more money to “recover” what you lost, and be wary of anyone who contacts you afterwards offering to get it back for a fee. Recovery scams target people who have already been defrauded.
| Registered and Genuine | Scam Pattern |
|---|---|
| Advice comes from an entity you can find in SEBI's intermediary search | An 'analyst' with no verifiable SEBI registration number |
| No promise of assured or risk-free returns | Guaranteed profits, daily targets, 'limited spots' |
| Trades happen in your own account on a registered broker's app | Payment to a personal account or a link-only app |
| You chose to contact the advisor | Unsolicited invite from an unknown number |
No. Reporting to your bank, the police and the cyber crime portal is free, as is a complaint on SEBI’s SCORES portal where it applies.
Yes. Consider a lawyer if the amount is large, if several people lost money to the same group, or if you want to pursue recovery beyond the police report.
Need professional legal help with this?
Find a Lawyer on VidyodayRead our guides on the Telegram investment scam, reporting an investment or trading scam, and the WhatsApp stock tip scam.
Warning signs include an unsolicited invite, promises of guaranteed or risk-free returns, pressure to act quickly, and requests to pay into a personal account or install an app from a link. Check whether the person or entity appears in SEBI’s intermediary search.
It depends on how fast you report and whether the receiving accounts can be frozen. Report to your bank and 1930 immediately; recovery is never guaranteed.
Providing investment advice for a fee generally requires SEBI registration. Free educational content differs from paid advice, but any group that takes your money or promises returns should be treated with caution.
A group hypes a low-liquidity stock, followers buy and lift the price, and the organisers sell into that buying, leaving followers with losses.
Save the evidence first — group link, admin IDs, and chats — then leave and report the group on the platform.
Report it to the police and the cyber crime portal, and inform the impersonated firm through its official channels. SEBI’s SCORES portal is meant for complaints against registered intermediaries and listed companies.
This article is for general information only and does not constitute legal or financial advice. Scam tactics evolve constantly — verify any investment opportunity independently through SEBI’s official channels before investing.
