August 27, 2024, 12:38 IST
Zerodha co-founder Nithin Kamath warns against fake trading apps that imitate major brokers and advises being skeptical of claims of easy money.
Fake apps that mimic the user interfaces of leading brokers and manipulate users with the dream of making quick money are dangerous, warned Zerodha co-founder Nithin Kamath. In a post on social media platform X, Nithin Kamath said that such apps deceive even “smart” and “sensible” people.
He shared a video of such scams and wrote, “Fake trading app scams have exploded and become a huge scourge. These scams work by luring you into trading and making you believe that it is easy to make money. So, you are first added to WhatsApp groups and then asked to install fake trading apps that look exactly like those of the big brokers.”
Explaining their strategy, he said that these apps let you make money on the first few trades to convince you that you can make a lot of money. After that, the apps ask you to transfer money to trade, but when you try to withdraw your “profits”, these app operators ask you to make an upfront payment and then disappear.
Nithin Kamath said: “Always remember: If something seems too good to be true, it almost always is. It is important to be skeptical of claims of easy money.”
One user commented on the post saying, “These scams are getting more sophisticated by the day. Even the smartest minds can fall for them when greed and urgency take over. Always double check everything before investing, especially with offers that are 'too good to be true'. Education and vigilance are key.”
A second wrote: “It's shocking how convincing these fake trading apps can be. Even the sharpest minds can be seduced by the promise of quick money. It's a good reminder that if something sounds too good to be true, it probably is. Stay alert and always double check everything before investing!”
