Many people, influenced by social media, friends, or relatives, believe that making money in the stock market is easy. This leads individuals to start trading and investing with unrealistic expectations. However, as Nithin says, \u201cStock markets are the toughest place in the world to make easy money in the long run\u201d.<\/p>\n
These unrealistic expectations also make people vulnerable to financial scams. There are numerous such scams, including phishing scams<\/a>, fraudulent advisory services, scams targeting the elderly, and the classic pump-and-dump schemes<\/a>.<\/p>\n At Zerodha, we have taken several steps to help prevent these scams. These measures include blocking illiquid option contracts, reporting any suspicious trades to the exchanges, alerting customers via Nudge when a stock is flagged as a risky penny stock during the buy order process, and raising awareness about these scams on social media.<\/p>\n However, we have recently encountered a new type of sophisticated scam: fake trading apps. These scams have become a significant problem, with thousands of people losing crores of their hard-earned money. To help raise awareness, we explain how these scams operate, why people are drawn into them, and how you can protect yourself from falling victim.<\/p>\n Check out this video on fake trading apps.<\/p>\n