ASIC continues finfluencer crackdown alongside global regulators — How to Identify & Stay Safe

INDIA — By BharatSecure Threat Intelligence Team · Updated Apr 30, 2026

Severity: MEDIUM | View Full Scam Details

ASIC Continues Finfluencer Crackdown in 2026: What Indian Investors Need to Know About This Growing Investment Scam

Beware: A new wave of investment scams linked to so-called "finfluencers" is sweeping India in 2026, risking your hard-earned INR, as global and Indian authorities tighten controls.

What Is the ASIC Continues Finfluencer Crackdown Alongside Global Regulators?

The Australian Securities and Investments Commission (ASIC), along with regulators worldwide, including those monitoring India’s digital finance space, are intensifying efforts to clamp down on misleading "finfluencers" — social media influencers who promote dubious investment schemes. These individuals often present themselves as financial experts but push risky or fraudulent products to unsuspecting followers.

In India, the situation is particularly concerning because many young, digitally savvy investors actively follow finance content on platforms like Instagram, YouTube, and WhatsApp. Some finfluencers promote unregulated crypto tokens, fake mutual funds, or high-return schemes that violate RBI and Securities and Exchange Board of India (SEBI) guidelines. According to recent alerts from the Indian Cyber Crime Coordination Centre (I4C) and CERT-In, there has been a noticeable rise in complaints related to investments made based on such misleading advice.

This crackdown stems from the worry that finfluencers exploit the trust of Indian investors, especially during a time when post-pandemic digital transactions, such as UPI payments, have soared, making fraud easier to execute.

How This Scam Works — Step by Step

1. Initial Contact via Social Media or WhatsApp Groups
   The scam begins when a finfluencer posts attractive stories or reels promising quick and huge returns on investments, often using fake testimonials or manipulated data. They may also invite followers to private WhatsApp or Telegram groups offering “exclusive” tips.

2. Building Trust Through Free Advice or Webinars
   After gaining followers, the finfluencer invites users to free online webinars, chats, or one-on-one sessions to create a sense of credibility. They often flaunt their lifestyle and claim endorsements from reputed firms or use fake certifications.

3. Pitching the Investment Product
   Once trust is built, the finfluencer recommends a particular investment — often unregulated crypto tokens, offshore schemes, or Ponzi-like mutual funds promising guaranteed returns which RBI or SEBI haven’t approved.

4. Request for Payment via UPI or Bank Transfer
   Victims are asked to transfer money using UPI apps, mobile wallets, or direct bank transfers. Scammers may also create fake payment portals to capture credit/debit card details.

5. Losing Contact After Payment or Fake Returns
   After payment, the finfluencer either stops replying or sends fake transaction statements to keep the victim hooked. Eventually, the victim realises the money is lost or the promised returns never materialise.

6. Attempts to Withdraw or Exit
   When victims try to withdraw their "investment," obstacles arise like frozen accounts, delays, or demands for more money as “exit fees.”

Real Warning Signs to Watch For

• Promises of guaranteed or abnormally high returns with little or no risk.
• Pressure tactics to “invest immediately” or join exclusive groups.
• Requests for payments via UPI or bank transfer without verified company details.
• Fake or unverifiable certifications, licenses, or endorsements.
• Use of celebrity photos or fake testimonials to build credibility.
• Non-transparent operations with no physical address or official website.
• Lack of registration with Indian regulators like SEBI or RBI for financial products.

What Happens to Victims

Victims often face significant financial losses, with amounts ranging from a few thousand to lakhs of INR. Since payments typically happen through UPI or direct bank transfers, reversing these payments is extremely difficult once completed. Some victims have also fallen prey to Aadhaar misuse and SIM swap attacks, where fraudsters steal OTPs to complete transactions or gain access to email and bank accounts.

Emotionally, victims suffer stress, shame, and mistrust towards digital financial systems, worsening their hesitation to invest again. Families may also face pressure, especially when large sums are lost. The delayed detection of such scams means many do not report immediately, compounding the chance of recovery.

What RBI and CERT-In Say

The Reserve Bank of India (RBI) has repeatedly warned about fraudulent investment schemes, emphasizing caution when transacting via UPI or digital wallets. RBI’s cyber fraud helpline (Call: 1800-111-555) advises users never to share OTPs or PINs with anyone.

CERT-In recommends vigilance against unsolicited financial advice on social media and urges immediate reporting of suspicious links or messages. The Indian Cyber Crime Coordination Centre (I4C) advocates filing complaints on cybercrime.gov.in and stresses the importance of educating oneself on recognised investment products.

How to Protect Yourself

1. Verify Finfluencer Credentials: Always check if the person is registered with SEBI or holds valid certifications.
2. Avoid Immediate Payments: Don’t rush into investments based on social media hype.
3. Confirm Investment Products with Official Sources: Use RBI and SEBI websites to verify legitimacy.
4. Never Share OTPs or Bank Details: Treat OTPs as highly confidential.
5. Use Only Recognised Payment Channels: Avoid payment portals shared via social media messages; instead use trusted apps.
6. Be Skeptical of “Exclusive” Groups: Legitimate financial advice does not require secrecy or exclusivity.
7. Report Suspicious Activities Immediately: Use CERT-In and I4C portals or call the 1930 cybercrime helpline.

What to Do If You've Been Targeted

If you suspect you have fallen victim:

1. Stop All Communications with the finfluencer immediately.
2. Contact Your Bank or UPI Provider to block further transactions or freeze accounts temporarily.
3. Report to Local Police Cyber Cell and file a First Information Report (FIR).
4. File a Complaint on cybercrime.gov.in, providing all evidence like chat screenshots, bank statements, and payment receipts.
5. Call the 1930 Cybercrime Helpline for advice on next steps.
6. Alert SEBI and RBI through their complaint portals for investment-specific frauds.
7. Consider Aadhaar Lock or SIM Blocking if you suspect identity theft or SIM swaps.

Frequently Asked Questions

Q: Can I get my money back if I transferred funds via UPI to a finfluencer scam?
A: Unfortunately, UPI transactions are immediate and often irreversible. However, you should immediately contact your bank to see if they can assist and file a police complaint. Early reporting increases chances of recovery.

Q: How do I verify if a finfluencer is genuine or registered with Indian authorities?
A: Check SEBI’s public database for registered investment advisors or entities. Legitimate financial advisors will provide registration numbers and have official websites.

Q: Are all investment schemes promoted on social media scams?
A: Not all, but many unregulated ones are risky or illegal. Always verify with RBI and SEBI’s recommended lists before investing. Avoid schemes promising guaranteed high returns or pressure tactics.

Stay alert and protect your INR and personal data from online scams by verifying any suspicious messages or investment offers with BharatSecure.app — your trusted partner in digital fraud awareness.