Fraud Alert: NPCI Warns Against Fake Trading Apps and Pyramid Schemes:

Fraud Alert: NPCI Warns Against Fake Trading Apps and Pyramid Schemes NPCI issues an alert on investment fraud The National Payments Corporation of India (NPCI) is promoting awareness about digital safety and investment scams. It advises people to be careful and well-informed before investing their money. NPCI cautions that investors always need to do full research and never believe random investment offers. Here are some popular investment frauds that people should know about. Discounted shares Scammers target low-volume stocks and attract investors by offering special discounts. They ask investors to transfer money to personal accounts instead of trusted exchanges or brokerage firms, which is a big warning sign. The scam is usually used in collecting huge amounts, sometimes in lakhs, under false pretenses of high returns through share trading. Scam Investment Platforms Scammers create fake investment websites or mobile applications that look like real brokers, fund houses, or exchanges. They attract investors by showing mock profits on the screen to trigger further deposits. But when users invest a considerable sum, they realize that they cannot withdraw their money. Job Offer Scams Scammers trick people by offering fake job opportunities. They ask victims to share their documents and write-ups and make them seem real. To confirm the transaction is real, they ask for a small amount of money. After the victim sends money, they are then requested to send more money, typically increasing in amount. They eventually find out the whole scam is a fraud. Ponzi and Pyramid Schemes These scams attract investors with the prospect of high returns, but instead of making money, they use money from new investors to reward previous ones. The scam folds when there are no more new individuals investing.