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NSE & SEBI Warn of Sophisticated Stock Market Scams

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  Published in Stocks and Investing on Friday, February 20th 2026 at 4:00 GMT by Goodreturns
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Mumbai, February 20, 2026 - The National Stock Exchange (NSE) and the Securities and Exchange Board of India (SEBI) have jointly issued a critical advisory today, warning investors about a surge in sophisticated stock market scams leveraging increasingly convincing digital facades. This isn't simply a case of poorly constructed phishing emails; scammers are now deploying remarkably realistic fake websites, social media profiles, and even generating deepfake video endorsements to lure unsuspecting individuals into fraudulent investment schemes.

The core of the scam revolves around the creation of meticulously crafted online platforms that convincingly mimic official NSE and SEBI communications. These fraudulent entities promise unrealistically high returns, capitalizing on the inherent desire for quick profits that exists within the investment community. The scammers utilize misleading information and fabricated data to entice investors into participating in what they believe are legitimate opportunities, only to have their funds disappear.

"We're seeing a significant escalation in the sophistication of these scams," explains Dr. Anya Sharma, Head of Investor Protection at SEBI. "Previously, these were often crude attempts. Now, they're utilizing advanced technology to replicate our branding, create professional-looking investment reports, and even impersonate our officials online. This makes it extremely difficult for the average investor to differentiate between legitimate offers and malicious traps."

The rise in these scams coincides with a broader trend of increased digital literacy, ironically creating a paradox where more sophisticated investors are also becoming more vulnerable to sophisticated attacks. Scammers are targeting both novice investors, hoping to capitalize on their lack of experience, and seasoned traders, luring them with promises of exclusive, high-yield opportunities.

The Modus Operandi: From Fake Websites to Deepfake Endorsements

The current wave of scams operates on multiple fronts. Scammers are registering domain names that are subtly different from the official NSE and SEBI websites - using slight misspellings or alternative top-level domains. They then populate these sites with content scraped from the genuine platforms, further enhancing their credibility.

Social media is another key battleground. Fake profiles are created on platforms like X (formerly Twitter), Facebook, and Instagram, mimicking the official accounts of NSE and SEBI. These profiles are used to share fabricated news, promotional material for fake schemes, and even engage in direct messaging with potential victims.

Perhaps the most concerning development is the increasing use of deepfake technology. Scammers are generating realistic video and audio clips of SEBI officials and financial experts seemingly endorsing specific investment opportunities. These deepfakes are then circulated online, adding a layer of credibility that is extremely difficult to debunk.

Protecting Your Portfolio: A Multi-Layered Approach

Both the NSE and SEBI are emphasizing the need for investors to exercise extreme caution and adopt a multi-layered approach to protecting their portfolios.

• Official Verification is Paramount: Always verify information directly through the official NSE website ([ https://www.nseindia.com/ ]) and the SEBI website ([ https://www.sebi.gov.in/ ]). Never rely on information received through unsolicited emails, social media posts, or other unverified sources.
• Scrutinize Investment Offers: Be highly skeptical of any investment opportunity that promises extraordinarily high returns with little to no risk. Remember, legitimate investments always involve a degree of risk.
• Cross-Reference Information: If you receive an investment proposal, cross-reference the details with information available on the official NSE and SEBI websites. Check if the company or scheme is registered with the relevant authorities.
• Report Suspicious Activity: If you suspect any fraudulent activity, immediately report it to the NSE and SEBI through their official channels. You can also file a complaint with the National Cyber Crime Reporting Portal ([ https://cybercrime.gov.in/ ]).
• Enable Two-Factor Authentication: Protect your online brokerage accounts by enabling two-factor authentication. This adds an extra layer of security, making it more difficult for scammers to access your funds.
• Be Wary of 'Get Rich Quick' Schemes: If something sounds too good to be true, it probably is. Avoid falling prey to promises of overnight wealth.

SEBI is also working on developing new regulations to address the challenges posed by deepfake technology and other advanced fraud techniques. "We're committed to staying one step ahead of the scammers," Dr. Sharma stated. "But ultimately, investor awareness and vigilance are the most powerful tools in combating these threats."