Nithin Kamath Warns Investors Against Falling Victim To Fake Trading Apps, Here's What He Said

The Zerodha co-founder warned users and said that these apps mimic leading broker interfaces and fool investors with the idea of becoming rich quickly

He expressed shock at how easily even educated people are falling victim to these scams. (Image Source: Zerodha)

Source : Zerodha

Zerodha co-founder, Nithin Kamath, cautioned investors against falling for fake trading apps and losing their savings to fraud. The billionaire warned users and said that these apps mimic leading broker interfaces and fool people with the idea of becoming rich quickly.

Sharing the information via a video, Kamath posted on social media platform X, formerly known as Twitter, and said, “Fake trading app scams have exploded and have become a mega nuisance. These scams work by inducing you to trade and making you think that making money is easy. So first, you are added to WhatsApp groups and then asked to install fake trading apps that look exactly like those of major brokers.”

Fake trading app scams have exploded and have become a mega nuisance.

These scams work by inducing you to trade and making you think that making money is easy. So first, you are added to WhatsApp groups and then asked to install fake trading apps that look exactly like those of… pic.twitter.com/3CXHVq3Hj0

— Nithin Kamath (@Nithin0dha) August 26, 2024

The entrepreneur noted that the investor then goes on to trade via these apps and even earns some money in the first few attempts. However, the catch is that this convinces the user that they can make a lot of money via this route and they are then asked to transfer funds to trade. But on withdrawal, the user is first asked to pay fees, taxes, etc, and in some time, the whole group completely vanishes, Kamath explained.

He expressed shock at how easily even educated people are falling victim to these scams. He cautioned the users and said, “Always remember, if something is too good to be true, it almost always is. It's important to be skeptical about claims of easy money.”

Notably, the video shared in the post was made to spread awareness about the matter by Zero1 by Zerodha and Cyber Dost. The former is part of a collaboration between Zerodha and LearnApp, while Cyber Dost is the cybersecurity awareness handle operated by the Ministry of Home Affairs, Government of India.