We live in a time when financial freedom is the goal of many and with a good objective in mind, they start exploring different investment options.
But sometimes the greed of earning quick gains or not recognizing the evil tactics of scammers they generally land up in a pit of investment scams and frauds.
This led them to a distress situation, but there is a solution to every problem and so does in the case of investment scams.
Here are some of the effective ways you can report investment scams encountered across various platforms.
How to Report Investment Scams in India?
Now after being scammed, people generally give up. But by putting in a little effort, one can increase the chance of recovering from their losses.
Here is important for victims to understand that reporting scams would not only help them get their money back but also other individuals like them who might fall into the trap.
Now, looking at the data the number of investment scams related to fake IPO, clone apps, Ponzi schemes, Telegram tips & advisories are the most common ones.
Most investment scams are executed in the name of the stock market and hence before reporting such cases, it is first important to understand the difference between registered and unregistered entities.
Registered entities are those that are registered with SEBI. This includes stockbrokers, Research analysts, and Investment Advisors.
Other than these scams occurring on social media and executed mainly by Fake Finfluencers, Forex Traders, etc are unregistered entities.
Now in case, the registered entity is involved in the scam, one can report a complaint to SEBI. In the case of an unregistered entity, the complaint is filed to Cyber Crime and the local Police Station.
Let’s now dig a little deeper to understand the filing process.
How to Lodge a Complaint in SCORES?
To file a complaint against registered entities, SEBI has provided a SCORES portal. To file a complaint on it one has to follow a few simple steps as mentioned below:
- Visit the SEBI website.
- Register on the SCORES portal by entering your basic details and PAN card number.
- On successful registration, log in to the portal.
- Enter the details of the registered person or company who did a scam.
- Confirm details.
- Draft your complaint and upload supporting proofs and documents.
- Submit your complaint.
Make sure you don’t use any special characters while drafting a complaint on SCORES. Also, to track your complaint keep logging in to SCORES or stay active on emails to respond quickly.
How to File a Cyber Crime Complaint?
In case of unregistered entities, you can file a complaint to Cyber Crime online. Also, you can report the case to the local police station and file an FIR. Make sure you carry all the proofs, emails, and chat screenshots along.
Further, you can file a complaint online on the Cyber Crime portal by following the steps below:
- Visit the cybercrime portal.
- Register by entering basic details.
- Now log in and choose the types of investment scams.
- Further, draft your complaint.
- Enter the details of the suspicious person.
- Upload proofs and other documents.
- Submit your complaint and note the acknowledgment number to track the status.
Conclusion
Now most of you must be thinking about what after filing a complaint on either of the above platforms. Will it help in getting recovery from loss?
Well, it depends on many parameters.
Also, in the case of SEBI, there are multiple steps involved starting from counselling to arbitration where a victim can put his side and claim for recovery of losses.
In case of Cyber complaints, on validation of complaints, Cyber Police freeze the scammer’s bank account making it impossible for him to do any transaction. Further, Cyber Police hold the amount and withdraw it to refund losses to the victim.
But yes to get recovery it is important to take quick action as any delay makes it difficult to track transactions and circulation of funds.
Above all, it is important to learn the way how do investment scams work to keep yourself financially protected.
