Investment advisor explains how ‘free' stock tip groups scam people

India Today

5 days ago

Three days. That's all it took for a young investor to lose Rs 17,000, not in a bad trade, but to a well-oiled scam hiding in plain sight.Abhishek Kumar, Founder and Chief Investment Advisor at SahajMoney, recently shared a cautionary post on LinkedIn. In it, he explains how so-called 'free' stock tip groups on WhatsApp and Telegram are duping thousands of unsuspecting retail investors, all under the guise of financial advice.advertisementThe strategy is a textbook pump and dump scheme. First, the operators buy a cheap, illiquid stock. Then they start pushing it aggressively across multiple groups. As members begin to buy in, the stock price shoots up, creating a false sense of credibility and momentum.
Once the crowd piles in, the original promoters quietly exit, selling at a profit and leaving others stuck with a crashing stock.If anything goes wrong, group members are simply blocked. There's no customer support, no regulatory trail, and no accountability.'These tips may look harmless, but they're anything but,' Kumar warns. 'Nobody runs free stock tips out of charity.'What's alarming is the sheer number of young investors getting pulled into this trap, many thinking, 'It's just a free tip, what's the harm?'As India sees a surge in first-time investors entering the markets, experts are urging caution. Their message is clear: real wealth creation doesn't come from tips or Telegram channels. It comes from systems, discipline, and long-term planning.If you're serious about investing, it might be time to leave the group chat.(Disclaimer: This article is for general informational purposes only and does not constitute financial advice. Readers are encouraged to consult a certified financial advisor before making any investment or financial decisions. The views expressed are independent and do not reflect the official position of the India Today Group.)- Ends