Officials’ Photos Exploited to Create Fake Social Media Accounts Spreading Fraudulent Investment Advice

India’s premier stock exchange, the Bombay Stock Exchange (BSE), issued a stern warning to investors on Friday about fraudulent activities involving fake social media profiles that misuse photos of senior BSE officials to offer deceptive wealth advisory services.

“It has come to our attention that photos of senior BSE officials are being used to create fake social media IDs. These counterfeit accounts claim to provide wealth advisory solutions to mislead unsuspecting investors,” the exchange said in an official statement.

The BSE clarified that its officials are not permitted to initiate or endorse any wealth management or advisory services in personal capacities. The exchange emphasized that investors should exercise caution and not fall prey to such misrepresentations.

This warning comes amid growing concerns about investment scams in India’s rapidly expanding retail investor market. With the country witnessing unprecedented growth in first-time investors since the pandemic, financial fraudsters have increasingly targeted inexperienced market participants through social media platforms.

“Investors are urged not to rely on any stock or share recommendation from such fake social media handles and to verify the source of communication before making any investment decisions,” the BSE advised in its statement.

The exchange reminded investors to engage only with registered intermediaries whose credentials can be verified on the official websites of the Securities and Exchange Board of India (SEBI) and BSE. This precautionary measure aims to protect retail investors from potential financial losses through fraudulent schemes.

BSE, Asia’s oldest stock exchange established in 1875, maintains strict communication protocols. It emphasized that official communications are only issued through its website (www.bseindia.com) and verified social media handles across platforms including Instagram, Facebook, LinkedIn, Twitter (now X), and YouTube, all under the handle @BSEIndia.

The exchange has been actively addressing investor grievances. In September 2025, BSE resolved 190 complaints against 126 listed companies, while receiving 173 new complaints against 102 companies during the same period. The exchange also disclosed that Suraj Products Ltd., Bajaj Auto Limited, and Reliance Home Finance Limited were the top three companies with unresolved complaints pending for more than one month.

The broader context of investment fraud remains concerning for Indian regulators. During the five-year period between April 2020 and March 2025, SEBI investigated 76 cases of investment-related fraud, resulting in disgorgement orders totaling Rs 949 crore ($114 million) in illicit gains.

Various government agencies, including central authorities, law enforcement bodies, and regulatory organizations, have been working collaboratively to prevent, detect, and combat investment-related fraud. These efforts have become increasingly important as India’s capital markets continue to expand, with the BSE Sensex reaching record highs in recent months.

Financial literacy experts point out that fraudsters often exploit bull market euphoria to target new investors. The explosion of financial content across social media platforms has created new challenges for regulators trying to protect market participants from misleading information.

Industry analysts suggest that investors should independently verify investment advice through multiple reliable sources and maintain healthy skepticism toward unsolicited recommendations, especially those promising unrealistic returns.