Beware! Cybercriminals Using SEBI's Name to Scam People on Facebook — Learn How to Stay Safe

In yet another alarming case of cyber fraud, scammers have now started impersonating SEBI officials (Securities and Exchange Board of India) to deceive unsuspecting investors. Using fake letterheads, recovery certificates, and even bogus mobile apps, these fraudsters are stealing huge sums of money by luring people into fake investment schemes in the name of IPOs and stock trading.

Let’s break down how this scam works, what happened recently in Panchkula, and most importantly, how you can protect yourself from falling into such traps.

How SEBI’s Name is Being Exploited in Online Scams

Cybercriminals have evolved their strategies. From pretending to be bank staff, CBI or ED officers, and even distant relatives, they are now posing as official SEBI agents to target people interested in investing.

In a recent case from Panchkula, Haryana, a victim named Jagmender Singh filed a police complaint after falling prey to a Facebook ad promising massive investment returns. The ad linked to an investment scheme allegedly backed by SEBI. The scammers even sent him fake SEBI certificates and contract documents to gain trust.

After convincing him to invest a large amount, the fraudsters blocked fund withdrawals, claiming penalty clauses and contract violations, and demanded more money.

They went as far as creating a fake mobile app mimicking Kotak’s QIP platform to simulate a real trading environment.

Fake SEBI Notices and Certificates – A New Tool of Deception

These cyber fraudsters use forged SEBI letterheads and documents that look identical to genuine SEBI notices. From fonts to logos, everything appears official at first glance. These documents often come with recovery orders, investment mandates, or account suspension notices — all created to manipulate the victim.

Their strategy? They pose as SEBI officers via calls or messages, then intimidate or lure people with the promise of high returns in IPOs or stock trading. Once the victim deposits funds, communication stops or demands escalate.

How to Identify a Fake SEBI Document or Officer

The real SEBI has issued clear guidelines to verify any communication you may receive in their name:

• ✅ All official SEBI orders and notices are published on its official website: https://www.sebi.gov.in

• 🔍 Visit the “Enforcement” section, then navigate to “Orders” to verify any suspicious letter or document.

• ⚠️ SEBI does not operate or endorse investment schemes directly. Any such claim is a red flag.

• 📞 SEBI officials never demand payments or personal financial information via WhatsApp, social media, or unofficial emails.

Immediate Steps to Take if You’re Targeted

If you receive unsolicited investment offers, threats from fake SEBI representatives, or suspicious documents:

Do not respond or share personal information.

Immediately report the incident by:

• Calling 1930, the national cyber fraud helpline

• Filing a report at www.cybercrime.gov.in

Screenshot all messages, emails, and documents and preserve call records as evidence.

If you’ve already shared any banking information, contact your bank to freeze your account immediately.

Don’t Fall for “Double Your Money” Traps

Many victims are lured with promises like:

• “Guaranteed returns in IPO”

• “Exclusive SEBI-backed trading access”

• “Recover your lost investments with SEBI help”

These are classic fraud hooks. Remember:

• SEBI does not recover funds for individuals.

• No investment scheme is 100% guaranteed.

• If it seems too good to be true, it probably is.

✅ Quick Tips to Stay Safe from SEBI Impersonation Scams

• Only trust information from SEBI’s official domain: sebi.gov.in

• Avoid investing based on Facebook, WhatsApp, or Telegram messages

• Never download unknown investment apps unless verified through app stores or bank websites

• Educate elderly family members who may be less tech-savvy

• Enable two-factor authentication (2FA) on financial apps

• Regularly monitor your bank statements and report suspicious activity

📢 Final Word

Cybercriminals are increasingly sophisticated, but awareness is your strongest defense. By understanding how these scams work and verifying every financial offer — especially those using names like SEBI — you can avoid losing your hard-earned money.

If you’ve ever thought, “This seems legit,” pause and double-check. SEBI won’t message you on Facebook, and your investment future doesn’t come with a WhatsApp link.