Module 1 of 4 in Scams, myths and investor protection
Recognising scams and protecting yourself
The warning signs of investment fraud, how pump-and-dump schemes and tip groups work, and how to verify and report.
4 lessons in this module. Progress is saved in your browser as you go.
This module covers the scams Indian investors meet most often and the checks that defeat almost all of them. Each lesson ends with a practical habit you can use the next time a message about a "sure-shot" stock reaches your phone.
By the end of this module you should be able to
- Recognise the common warning signs of investment scams, such as guaranteed returns, secrecy and pressure to act fast.
- Explain how a pump-and-dump scheme works and who loses money in it.
- Explain why tips in chat groups are risky and how fake proof of profits is manufactured.
- Check whether an adviser or intermediary is registered and know where to report a suspected fraud.
Lessons in order
Module test
10 questions, chosen at random from a bank of 32 questions and balanced across this module's learning goals and difficulty levels. Every question comes with an explanation. You need 80% to pass, and you can retake it as often as you like with a fresh set of questions.
This module builds on
- SEBI, brokers and demat accounts: Knowing who is allowed to handle your orders and money makes unregistered operators easier to spot.
- Bid, ask, spread and liquidity: Pump-and-dump schemes depend on illiquid shares, whose prices a small amount of money can move.