Stock market fraud on the rise: 6 ways to protect yourself

Although online stock market fraud has now become common, investors and traders are still advised to remain alert to potential threats and scams that target unsuspecting individuals through various tactics and leave victims financially devastated.

In view of the growing threat, market regulator Securities and Exchange Board of India (SEBI) and stock exchanges including NSE are cautioning investors against fraudulent entities and individuals who defraud people through digital means and social media platforms.

Investors can mitigate these risks by following these 6 important tips:

1. Refusing unsolicited offersInvestors should be cautious and treat all unsolicited investment advice or promises of excessive returns with suspicion. Unsolicited advice may come via email, messages, phone calls or social media platforms.
2. Select Legitimate Investment FirmsInvestors should look for legitimate investment firms and do background checks to know their track record. Legitimate firms do not send unsolicited advice or lure investors with excessive returns.
3. Give preference to registered and regulated institutionsConnect only with SEBI-registered brokers and platforms that adhere to stringent regulatory oversight and investor protection measures.
   
   
4. Be alert to guaranteed profitsInvestors should be cautious of people or institutions that promise very high returns. Investors should understand that equity investments are full of risks and market volatility.
5. Cyber ​​ThreatsCyber ​​fraud has become very common these days and you must stay aware of it. One way to do this is to constantly educate yourself about the latest cyber threats and the common strategies adopted by fraudsters.
6. Securing digital assetsSecuring your digital assets with an advanced, regularly updated antivirus solution is an essential investment to protect your financial future from cyber threats.

Quick Heal suggests a multi-layered defense strategy for investors and traders. These include real-time threat detection, web protection, identity theft protection, and deep scans (scanning apps before installation and continuously monitoring installed apps for potential threats).

Quick Heal Technologies is a cyber security solutions provider.

Also read: NSE issues alert against entities providing dabba trading, investment tips via Telegram channel and Instagram

,Disclaimer: The recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)