August 27, 2024 12:38 PM
Nitin Kamath, co-founder of Zerodha, warned against fake trading apps that imitate major brokers and urged people to be skeptical of claims of easy money.
Fake apps that mimic the interface of major brokers and lure users with promises of easy money are dangerous, warned Zerodha co-founder Nitin Kamath. In a post on social media platform X, he said such apps fool even “smart” and “sensible” people.
Sharing a video about one such scam, he wrote, “Fake trading app scams have become very common and extremely annoying. These scams work by tricking you into trading and making you think it's easy to earn money. First, you are added to a WhatsApp group and asked to install a fake trading app which looks exactly like the ones from big brokers.”
Explaining their strategy, he said that for the first few transactions, these apps make you earn money to make you think you can make a lot of money, then the app asks you to send money for the transaction, but when you try to withdraw your “profits”, these app operators ask for an upfront payment and then disappear.
“Always remember that if something sounds too good to be true, it most likely isn't. It's important to be skeptical of claims of easy money,” Nitin Kamath said.
One user commented on the post, “These scams are getting more sophisticated every day. Greed and impatience can fool even the smartest people. Always double check before investing, especially if it seems 'too good to be true'. Education and vigilance are key.”
A second wrote: “It's shocking how convincing fake trading apps can be. Even the smartest people can be seduced by promises of easy money. This is a reminder that if something sounds too good to be true, it probably isn't. Always be careful and double check before investing.”