How Fake Investment Apps Are Fooling Investors - and How You Can Stay Safe
Imagine downloading an app that looks sleek and professional. It shows rising charts, real-time data, and even a chatbot “advisor” who guides you. It promises safe investments, quick redemptions, and “guaranteed” returns.
You invest.
Then one day, the app crashes. The customer care number doesn’t work. Your money is gone-and the platform never existed.
You’ve just been trapped by a fake investment app.
Fake investment apps are fraudulent mobile applications designed to mimic legitimate platforms for mutual fund investing, trading, or wealth creation. Some mimic the branding of known companies; others are entirely fake with no backing or registration.
Their goal is simple: to extract money and personal data from unsuspecting investors.
In India, nearly 7,000 cyber frauds are reported daily. In 2024 alone, over 1 lakh cases involved fake investment platforms that promised high returns and disappeared after collecting funds-causing losses of ₹3,216 crores. Additionally, 20,043 cases were linked to clone trading apps, where victims were duped into bogus forex or options trades, often with funds converted into cryptocurrency-resulting in losses of ₹1,420 crores.
As recently as July 2025, the Telangana Cyber Security Bureau arrested three individuals in Hyderabad involved in a fake investment app scam. They had siphoned off nearly ₹3.24 crores from unsuspecting investors.
Paid ads on social media: Promoting “exclusive” or “high-return” investments.
Impersonation: Using names/logos similar to SEBI-registered intermediaries.
Fake dashboards: Showing unreal returns and fake NAVs to build trust.
Referral scams: Offering commissions or rewards for inviting friends.
No real compliance: No KYC, no SEBI registration, no protection.
Some even offer “support numbers” or fake video chats with so-called financial experts to seem authentic.
Download apps only from official stores like Google Play Store or Apple App Store-never from random links or forwarded messages.
Verify if the platform or intermediary is SEBI-registered using this official link: 👉 SEBI | Recognised Intermediaries
Check the company's website and ensure it matches the app name and contact details.
Avoid apps that promise guaranteed returns-legitimate investments never offer certainty.
Don't invest without KYC. SEBI-registered platforms follow proper KYC protocols.
Be cautious of apps that urge you to act fast, offer high referral commissions, or show returns that seem "too good to be true."
Enable 2FA (two-factor authentication) for added security and monitor your bank account regularly.
Fraudulent apps may look sophisticated, but they are designed to steal-your money, your data, and your peace of mind.
So before you trust an app with your hard-earned money:
Pause. Check. Verify.
Be an Atmanirbhar investor, don’t just download-do you due diligence.
Download the SAARTHI App.
