What to do if I shared my OTP in an investment scam?

Immediately change your passwords and contact your bank's customer service. Report the incident at 1930 or cybercrime.gov.in.

How can I identify if a trading app is legitimate?

Check if the app has the SEBI Verified App Label and read user reviews to see if there are complaints of fraud.

How to report this type of scam in India?

Report scams at cybercrime.gov.in or call the helpline 1930. You can also reach out to your bank for assistance.

How can I recover money or protect my accounts after a scam?

Contact your bank to dispute unauthorized transactions, report the scam to authorities, and consider reviewing your financial security measures.

Sebi rolls out Verified App Label to curb fraud, bolster investor protection

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

Verdict: Suspicious | Risk Score: 5/10 | Severity: Medium

Category: investment_scam

Scam Intelligence: Sebi rolls out Verified App Label to curb fraud, bolster investor protection

Proprietary signals from BharatSecure's scam-tracking database.

Last reported

Apr 22, 2026

How Sebi rolls out Verified App Label to curb fraud, bolster investor protection Works

The Securities and Exchange Board of India (SEBI) has introduced a Verified App Label initiative in collaboration with Google to help investors identify legitimate trading applications. This initiative aims to reduce digital fraud as retail investment increases, fostering greater trust and safer investment practices.

How This Scam Works — Detailed Explanation

In recent times, the surge in digital trading has attracted not only legitimate investors but also a wave of scammers. They often target victims through social media platforms like WhatsApp, Facebook, and other online forums, where they create fake profiles posing as financial advisors or successful traders. These scammers publish enticing advertisements about 'guaranteed' returns on investment opportunities, using persuasive language that lures unsuspecting individuals. The popularity of mobile applications for trading has given rise to fraudulent apps which mimic genuine trading platforms. Scammers may promote these apps on various platforms, prompting users to download them under the guise of investment opportunities.

The tactics employed by these fraudsters are well-researched and carefully crafted. They often leverage the principle of social proof, claiming that many people have successfully invested with them, thus instilling a sense of trust and urgency. They might arrange small initial payouts to new investors to further entice them, making it seem like profits are easily achievable. Once they have built a relationship with the victim, they may push for larger investments, often highlighting fictitious trading gains to manipulate victims into parting with more money. Notably, such scams may utilize official-looking websites and documents to lend an appearance of legitimacy. This manipulation often plays on the victim's desire for financial security and their fear of missing out on potentially lucrative investments.

Once victims engage with these fraudulent schemes, the process of deception intensifies. Typical scenarios involve victims being instructed to download a fake trading app, where they are asked to link their bank accounts, UPI IDs, or even link their Aadhaar for verification. A concerning case involved a victim who linked their bank account to a fraudulent trading app, resulting in unauthorized UPI transactions and immediate losses amounting to ₹3 lakh. Many victims discover too late that they cannot withdraw any funds credited to their accounts on these platforms, which often leads to a distressing cycle of requests for more investment to unlock their funds. Victims may also find themselves on the receiving end of continual pleas for additional money, disguised as fees for processing withdrawals or taxes, with no legitimate recourse available to them.

Real-world impacts of such scams are pervasive, contributing to a notable rise in reported investment fraud cases in India. For instance, a report from the Ministry of Home Affairs (MHA) stated that nearly ₹1,200 crore was lost to various types of scams, including investment frauds in 2022 alone. The Reserve Bank of India (RBI) and CERT-In frequently issue warnings about such fraudulent activities, advising the public to exercise extreme caution when engaging with unfamiliar investment apps. Detailed statistics indicate growing complaints related to investment scams, leading to escalated concerns for consumer protection and trust in digital platforms.

To differentiate between scams and legitimate investment communications, investors must look for key indicators. Genuine trading platforms will usually be regulated by SEBI, whereas scam apps lack official certification. The newly rolled-out Verified App Label by SEBI seeks to tag authentic investment applications, providing an extra layer of security for users. Always verify any app claiming to be a trading platform through SEBI's official website before installation. Additionally, be suspicious of unsolicited messages or calls that urge swift investment—legit investment opportunities do not rush potential clients. Notifications that prompt immediate action should raise red flags rather than assurance. Keep a watchful eye, and when in doubt, remember to cross-reference app details and seek information from trusted sources.

Visual Intelligence:

BharatSecure's AI has identified this as a used in scams targeting Indian users.

Who Does Sebi rolls out Verified App Label to curb fraud, bolster investor protection Target?

General public across India

Red Flags — How to Identify Sebi rolls out Verified App Label to curb fraud, bolster investor protection

SEBI
Verified App Label
digital fraud
investor protection
trading apps

What To Do If You Encounter Sebi rolls out Verified App Label to curb fraud, bolster investor protection

Report the scam at cybercrime.gov.in or call the cybercrime helpline 1930 immediately if you suspect fraud.
Contact your bank's customer service helpline (SBI 1800-11-1109, HDFC 1800-202-6161) to alert them about any suspicious financial activity.
Change your banking passwords and UPI PINs as a precaution if you've shared sensitive information.
Take screenshots of any communication related to the scam; this can be useful for investigations.
Alert your friends and family about this type of scam, helping to raise awareness and prevent further incidents.
Monitor your financial accounts regularly for any unauthorized transactions and report them without delay.

How to Report Sebi rolls out Verified App Label to curb fraud, bolster investor protection in India

Call 1930 — National Cyber Crime Helpline (24x7)
File a complaint at cybercrime.gov.in
Contact your bank immediately if money was lost
Call RBI helpline: 14440 for banking fraud

Frequently Asked Questions

What to do if I shared my OTP in an investment scam?: Immediately change your passwords and contact your bank's customer service. Report the incident at 1930 or cybercrime.gov.in.
How can I identify if a trading app is legitimate?: Check if the app has the SEBI Verified App Label and read user reviews to see if there are complaints of fraud.
How to report this type of scam in India?: Report scams at cybercrime.gov.in or call the helpline 1930. You can also reach out to your bank for assistance.
How can I recover money or protect my accounts after a scam?: Contact your bank to dispute unauthorized transactions, report the scam to authorities, and consider reviewing your financial security measures.

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