Online scams are on the rise, and even savvy investors are falling victim to them. Nithin Kamath, the founder and CEO of Zerodha, has raised concerns about a particularly widespread scam—the WhatsApp investment scam—which he claims is the most common among all investment frauds currently circulating.
In a detailed post on X, Kamath described how scammers are targeting investors by posing as Zerodha representatives on WhatsApp. These scammers create convincing fake groups with names like "Zerodha Elite Traders" or "Premium Investors Club" to lure people in. The groups are designed to look legitimate, complete with official logos and even fake SEBI (Securities and Exchange Board of India) registration numbers, making them appear authentic at first glance.
Once an individual is added to one of these groups, they are introduced to what appears to be a community of successful investors. The admins—who impersonate Zerodha employees, including Kamath himself—share fabricated success stories, screenshots of high returns, and testimonials that suggest anyone can make easy money by following their advice.
The scam takes a more dangerous turn when the victims are offered access to “premium signals” and encouraged to download a fake app that looks identical to Zerodha’s legitimate platform, Kite. After making an initial deposit, the victim’s dashboard shows imaginary profits, further enticing them to invest more money.
However, when the victims try to withdraw their earnings, they are asked to pay extra fees. This is when they realize they have been scammed, as the fraudsters disappear with their funds.
Kamath has urged investors to be vigilant and cautious, stressing the importance of verifying the source of financial advice. He advised that individuals should never act on unsolicited financial advice received through messaging apps like WhatsApp. If in doubt, Kamath recommended checking the official Zerodha website or consulting with a SEBI-registered financial advisor before making any investment decisions.
This scam highlights the growing risks associated with online investment platforms and underscores the need for investors to remain cautious and rely only on verified sources when making financial decisions.
