In short
A person or entity sells investment products or strategies without appropriate registration The objective is typically to cause financial loss through unregulated advice, misleading claims or direct fund collection.
What it is
The promoter claims expertise and may promise strong or near-certain returns. The victim is then pushed to pay advisory fees, follow trading instructions or transfer investment funds.
How it starts
A person or entity sells investment products or strategies without appropriate registration.
What they tell you
The promoter claims expertise and may promise strong or near-certain returns
What they want you to do
Pay advisory fees, follow trading instructions or transfer investment funds
How you lose money
cause financial loss through unregulated advice, misleading claims or direct fund collection
What happens next
After the first successful step, the fraudster may demand more money/information, deepen account or device access, or disappear.
Warning signs
authority | greed | FOMO | urgency | unregistered solicitation
Where this is documented
India — officially documented by an Indian authority/regulator
How to avoid it
Verify the intermediary and app through SEBI/RBI-authorized channels; reject guaranteed-return claims and pressure to move money to personal or unrelated accounts.
If it already happened
Contact the bank/payment provider immediately if money moved; report financial cyber fraud promptly via 1930 and cybercrime.gov.in; preserve messages, transaction IDs, phone numbers and URLs.