Zerodha CEO Nithin Kamath warns investors: Biggest stock scams happen on WhatsApp; here's how not to fall

TOI Tech Desk / TIMESOFINDIA.COM / Apr 30, 2025, 13:36 IST

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Zerodha CEO Nithin Kamath has issued a warning about prevalent stock market scams operating through WhatsApp and Telegram. Scammers lure users into fake groups with promises of high returns, using fake logos and SEBI registration numbers. Victims are shown imaginary profits but are then asked to pay fees to withdraw funds, after which the scammers disappear.

Zerodha CEO Nithin Kamath warns investors: Biggest stock scams happen on WhatsApp; here's how not to fall

Zerodha CEO Nithin Kamath has posted a strong warning for users about the increasing prevalence of stock market scams that operate via messaging apps like WhatsApp and Telegram. Kamath cautioned that some of the most significant financial frauds targeting investors are now taking place on the messaging platform and urged individuals to exercise extreme vigilance. In a long post on X, Kamath explained that how these investment scams via WhatsApp work. Kamath also explicitly stated that Zerodha Online does not provide stock tips or investment advice and clarified that the company does not operate any trading groups on WhatsApp or Telegram.

What Zerodha CEO Nithin Kamath said on investment scams

In his post on X, Kamath explained that the investment scams on running on WhatsApp involve adding users to fake WhatsApp groups named “Zerodha Elite Traders” or “Premium Investors Club.” The scammers also use fake logos, brand colours and false SEBI registration numbers to appear legitimate and lure users.
Once users deposit money into these apps, they are shown imaginary profits. However, when attempting to withdraw funds, victims are asked to pay additional fees, taxes, or verification charges—only for the scammers to vanish with their money.

Read Zerodha CEO Nithin Kamath’s complete post here

Among all investment scams, the one that has claimed the most victims is the WhatsApp investment scam.

Here's how the scam works:

Step 1: You're added to a group with names like "Zerodha Elite Traders" or "Premium Investors Club." The logo, colors, and even SEBI license numbers look legit. The admins pose as me, Nikhil, Venu, or some of our employees.

Step 2: Within hours, the chat is flooded with screenshots of 100–200% intraday returns and testimonials. All of them are fake.

Step 3: They peddle "premium signals" and link to a fake app that looks exactly like Kite. Once you deposit money, the dashboard shows imaginary profits.

Step 4: When you try to withdraw the profits, you're told to pay processing fees, taxes, and verification charges. The scammers then take the money and vanish.

Note:

does not offer stock tips, investment advice, or run WhatsApp/Telegram trading-signal groups. All official communication comes only through our verified channels.

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Kamath also emphasised that Zerodha does not provide stock tips, investment advice, or operate any WhatsApp or Telegram trading groups. He further urged investors to remain vigilant, verify sources independently, and avoid responding to unsolicited financial advice.

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