'Verify authenticity of people': Sebi cautions investors on rising impersonation frauds

Market regulator Sebi has cautioned investors to stay vigilant against fraudsters imposing as Sebi officials, saying that there have been instances where frauds posing as its officials have sought payment on the behalf of the regulator. The markets regulator has said gullible investors are losing their hard-earned money by believing these fraudsters and transferring money to their fraudulent accounts. "Investors may also remain cautious and verify the authenticity of people demanding information or payment on behalf of SEBI."

Sebi said various instances of the impersonation of identities of Sebi officials, offices of Sebi and email ids of its officials by fraudsters have come to the light. "Fraudsters are claiming to be officials of Sebi and sending a communication to entities using the letter head, logo and seal of Sebi."

In certain instances, fraudsters send notices via social media platforms and request for payments for compliance services, payment of penalty amounts or fines, while threatening SEBI action.

Sebi says its letter head is being misused by fraudsters to show they are a certified vendor or merchant account and is under Sebi's supervision. "The certificate on Sebi's letter head portrays a Sebi authorised bank account on which signatures of Sebi officials are impersonated and Sebi logo is imprinted, making investors believe the stated fraudulent account is a genuine account."

Sebi's message to investors:

i. Every enforcement action taken by Sebi is available on the SEBI

ii. Any online order/settlement/recovery payment to Sebi is done via siportal.sebi.gov.in/intermediary/AOPaymentGateway.html

iii. Contact details of Sebi officials are available on its website

iv. Communication from Sebi through emails is sent through official e-mail IDs of SEBI officials only. These email IDs end with domain address @sebi.gov.in.

v. Addresses of Sebi offices are also available on the SEBI website

vi. Investors are advised to remain vigilant while dealing with communication being received from domain addresses that do not end with @sebi.gov.in.

SEBI has also launched an awareness campaign on investment scams, collaborating with MIIs to educate the public about common scams in the securities market and promote informed decision-making. The campaign strategically leverages social media platforms like YouTube, Instagram, Facebook, X and WhatsApp to share impactful educational content.