Upstox, the financial services platform, has issued a cautionary advisory regarding an uptick in impersonation scams targeting investors. With the increasing adoption of AI, Upstox said it has observed instances across sectors where individuals are trying to impersonate brands and defraud the general public.
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While investigating such attempts, the Upstox cybersecurity team has identified common patterns – such as the creation and usage of fake Social Media accounts, Apps, WhatsApp groups, and Websites pretending to be Upstox offering educational courses, stock tips, and promising guaranteed returns.
Fake Social Media Channels
Upstox has noticed fake channels, such as ‘Upstox Facilities Group’ and ‘Upstox Investment Academy’, falsely claiming affiliation with Upstox and posing as Upstox employees. These groups are claiming to conduct educational courses and sessions on the Stock Market under Upstox’s name, the platform said.
Customers from Tier 2 and Tier 3 are especially affected by these impersonation scams due to a lack of awareness and limited access to reliable information sources.
Ravi Kumar, co-founder and CEO, Upstox, said, “We take the safety and security of our investors very seriously. We are committed to providing a secure investment environment and request all investors to conduct transactions only through our official channels. Please help us spread awareness and stay vigilant. Our goal is to ensure that every investor can transact with confidence and peace of mind.”
The wealth management platform added that its representatives will never ask users to transfer money via any link or make cash payments.
To avoid falling prey to impersonation scams, Upstox has shared a few crucial measures:
1. Check broker legitimacy: Always conduct thorough research before engaging with any individual or platform. Look for SEBI registration and Stock Exchange membership to ensure credibility.
2. Beware of unsolicited offers: Exercise caution with unexpected calls, emails, or messages promising quick profits. Block and ignore such communications to avoid falling victim to scams.
3. Verify communication channels: Pay close attention to the communication handles of brokers offering quick returns. Upstox always uses its official channels, details of which are provided at the end of this blog.
4. Protect personal information: Keep sensitive information private, especially when dealing with unknown individuals or suspicious requests. Upstox or its employees will never ask for personal details without proper verification.
5. Report suspicious activity: Promptly report any suspicious activities here
Upstox reiterated that its employees will never ask for personal or financial information through unofficial communication channels.
Upstox will not share Stock tips offering guaranteed returns. Investors are urged to stay vigilant, verify all communications, and report any suspicious activities immediately. Upstox accepts no responsibility for any transactions made which were improperly incurred as a result of fraudulent activity, the company added.
