From Stock Market Scams to Betting Addictions: Celebrities and Influencers are robbing India's Youth and are being misled
In recent years, India has seen an alarming rise in the number of self-proclaimed financial gurus on platforms like Twitter (FinTwit), YouTube, Instagram, Telegram and WhatsApp. Many of these so-called “gurus” boast about their immense success in stock trading, showcasing impressive screenshots/video grabs of profits to lure in followers.
But beneath the surface lies a sinister truth — In reality, many of these “advisors” are unprofitable traders who profit by manipulating their followers into buying expensive courses or scamming them through fake investment schemes.
The impact of online betting games on youth in India, is even more dire significantly which have become increasingly addictive and financially draining. These games, often disguised as skill-based platforms, lure young individuals with the promise of
quick money. Many of these apps promote betting and are heavily promoted by top Bollywood stars, Cricketers, Social Media Influencers.
The Anatomy of a Financial Scammer
The playbook of these scammers is relatively straightforward. They start by flaunting high returns through carefully curated (often fake) screenshots of successful trades. Their social media feeds are filled with motivational posts, strategies that promise sky-high returns, and personal anecdotes of financial freedom. They might even offer free webinars or “exclusive tips” in private chats to build trust.
But here’s the catch: once they’ve captured enough attention, they pivot. The real money for them isn’t in trading—it’s in the courses they sell. These scammers make the majority of their income, about 98%, from selling expensive trading courses and masterclasses, which often cost hundreds or even thousands of rupees. Their real expertise? Marketing, not investing.
Real-World Data: The Scale of the Problem
A 2024 report from FINRA (Financial Industry Regulatory Authority) highlighted a significant increase in complaints about fraudulent “investment groups” on social media. Scammers posing as registered advisors lure victims into private chats, promising foolproof strategies, only to swindle them through false promises of high returns. The amount of money lost to these scams is staggering—millions of dollars, and many of these victims are young, first-time investors.
Similarly from UK, data from Barclays shows that in 2023 alone, investment scams accounted for one-third of all money lost to fraud. The rise in social media scams has been particularly alarming, with platforms like Instagram and WhatsApp serving as breeding grounds. Scammers often target millennials, with victims losing an average of £14,313 per scam.
The Appeal of High-Return Promises
What makes these scams so effective is the promise of high returns with minimal effort. Most people are enticed by the idea of “beating the market” with secret strategies shared by these influencers. In reality, the scams start small: victims are often asked to invest modest sums, only to be coaxed into larger amounts once initial “profits” are shown. Unfortunately, by the time they realize the scam, it’s too late.
These scammers also thrive in the high-energy, fast-paced environment of social media, where impulse and urgency are key. Fake ads, deepfake videos of well-known investors, and even phishing attempts disguised as trading apps are some of the tools they use to build credibility.
Stock Manipulation: A Dangerous Game
One of the key tactics used by these fraudsters is manipulating stock prices to their advantage. They often recommend specific stocks to their large following, urging them to buy, knowing full well that this will drive up the stock price. Once enough people invest, the scammers sell off their own holdings at a profit, leaving their followers with the inflated stock that quickly drops in value.
This practice of “pumping and dumping” is illegal, and many influencers act as operators, manipulating prices without any regard for their followers’ financial well-being. They use their social media influence to create artificial demand, profiting off the misinformed investments of their followers.
Random Stock Recommendations Without Analysis
In addition to price manipulation, many of these so-called advisors provide random stock buy/sell recommendations based purely on whims rather than any sound financial analysis. They might send out broad, vague advice like “Buy XYZ stock today!” or “This sector is about to boom!” with no proper research or due diligence. Worse still, they often delete or hide failed recommendations, only showing off their successes.
Such reckless behavior can lead to disastrous financial consequences for investors, as these suggestions are often based on nothing more than a hunch or an attempt to manipulate markets.
SEBI's Regulations and the Rise of Uncertified Advisors
To combat this, the Securities and Exchange Board of India (SEBI) has strict regulations in place. SEBI requires that anyone offering financial or investment advice must be registered and certified. However, many of these scammy influencers circumvent SEBI’s regulations by claiming to offer financial education rather than direct advice.
By presenting themselves as educators and not financial advisors, they attempt to dodge legal repercussions. This has led to a proliferation of scams, where individuals with no qualifications continue to manipulate, misinform, and mislead the public. SEBI has taken actions to bar individuals from offering advice without proper certification, but the loopholes still allow many of these fraudsters to operate(Business Standard and India Today).
The Rise of the Fake USDT Trading Scam
A newer scam making rounds in India is the USDT trading scam, where scammers promise high returns on trades involving Tether (USDT), a popular cryptocurrency tied to the US dollar. These scams often involve fraudulent crypto trading platforms app, luring investors with the promise of massive gains from trading USDT. Victims are typically directed to invest using these platforms, only to find their money stolen or their accounts blocked when they attempt to withdraw profits( India Today).
These scammers use aggressive marketing tactics on Telegram groups and WhatsApp to push their schemes, presenting fake trading results that show consistent gains. Much like their stock-picking counterparts, they bank on the public’s lack of knowledge about cryptocurrency to pull off these scams.
Spotting the Red Flags: How to Safeguard
How can you protect yourself? First, always be wary of anyone guaranteeing high returns with minimal risk. If it sounds too good to be true, it probably is. Be cautious of trading courses marketed as the “ultimate secret” to financial freedom. Most legitimate financial education services are transparent about their limitations and don’t rely solely on flashy marketing or fake screenshots.
Before following any advice or investing in a course, always check the credentials of the person behind it. Fake Financial Advisors in India, promoting unprofitable trading and investing courses, can be enhanced with recent data on scams involving financial advice on social media.
Protect Yourself: What to Look Out For
To protect yourself from falling victim to these fraudsters, it’s essential to keep an eye out for the red flags:
- Stock recommendations with no supporting analysis.
- Fake profit screenshots meant to lure you in.
- Excessive pushing of courses, masterclasses, or educational content rather than legitimate financial advice.
- Claims of guaranteed returns, particularly in volatile markets like crypto.
Always verify the credentials of any advisor you consider trusting. SEBI offers tools to check if someone is a registered advisor. Be skeptical of anyone who presents too-good-to-be-true promises and avoid platforms that do not have proper SEBI regulation or certification.
In India, social media platforms such as WhatsApp, Telegram, and Instagram have become breeding grounds for these scams. Fraudsters, posing as successful traders or financial advisors, lure people with screenshots of fabricated profits and stories of “quick wealth.” Victims are often added to investment groups, where they are encouraged to join courses or use fake trading apps. These apps showcase high returns to entice further investment, but when victims attempt to withdraw funds, they find themselves blocked or asked to pay additional fees.
A recent scam in Pune left 272 victims defrauded of ₹125 crore within just six months of 2024. These scams have targeted even experienced investors, who were tricked into investing in fraudulent schemes, often with promises of returns as high as 1,000%. In many cases, these schemes involved multi-layered criminal networks, with funds being funneled through accounts in India and then transferred abroad via cryptocurrency.
How Betting Games Are Affecting Youth
Betting Apps is showcased as an easy avenue to make money without putting in the efforts. Behind this lure, lurks the darkest moments for the youths of tomorrow which challenges the common notion and rationale which has been the foundation of modern civilisation, HARDWORK!
The youths of today are attracted to the prospects of get rich quick without much thought and guidance, the delusional world of social media influenced by a strong urge of worldly pleasure leaves a profound effect on them to follow the suit. These betting apps which has wide range of betting products calibrated in the guise of popular games to choose from Ludo, Rummy, Poker and also actual sports betting at a finger tip has made things convenient. It is difficult to let the misled believe that there are no free lunches in this world.
- Addiction and Financial Losses: Online betting platforms attract users, particularly youth, with the illusion of easy money through games and sports betting. However, the reality is that many users lose significant amounts of money, leading to debt, mental health issues, and strained relationships. According to reports, several young individuals have ended up losing lakhs of rupees through these platforms. The addictive nature of these apps, which keep users engaged through frequent notifications and rewards, exacerbates the problem.
Celebrity Endorsements: What makes these platforms even more dangerous is the backing from top celebrities and influencers. When bollywood icons like Hrithik Roshan promote such apps, it lends legitimacy to them in the eyes of fans, who are more likely to trust these platforms because of their association with their favorite stars.
- Legal Loopholes: Many of these platforms operate in a legal grey area by branding themselves as “skill-based games,” which helps them bypass gambling regulations. However, the fine line between skill and chance in these games is often blurred, leading users to gamble large sums without understanding the risks involved. States like Tamil Nadu and Andhra Pradesh have already moved to ban these platforms due to the devastating impact on individuals, particularly students and low-income earners.
- Psychological Impact: These platforms are not just robbing the youth of their money but also their time and mental peace. Constantly chasing the next win and the rush of placing bets becomes an obsession. Many users report increased anxiety, depression, and social isolation as a result of these platforms.
The combination of celebrity influence, psychological manipulation, and the illusion of legality is creating a dangerous environment for the youth, the tactics of these apps are also questionable, initially they give away small prize winnings to entice the user and in turn make them increase the stake of bet. Many youths, blinded by the appeal of quick money, have ended up in debt or addiction. In some cases, they even resort to borrowing money to continue playing, leading to further financial distress and strained family relationships. A study from India’s National Institute of Mental Health and Neurosciences (NIMHANS) reported that online gaming addiction is on the rise, particularly among teenagers and young adults, contributing to depression, anxiety, and even suicide
Message to the Youth: No Free Lunches
To safeguard against these traps, it’s important to understand that there are no easy ways to make money. If these platforms truly offered quick, reliable profits, their creators wouldn’t need to entice players with gimmicks, advertisements, and celebrity endorsements. The illusion of winning is just a part of the design meant to trap players in a losing cycle. The only people who consistently profit are the platform owners, who thrive on the losses of their users.
By shedding light on these manipulative practices, I am here to serve this blog as a warning to the youth, helping them avoid falling into the dangerous traps of online gambling disguised as innocent games. Be wary, always demonstrate skepticism toward any platform that promises easy returns and to be mindful of the real risks these platforms pose.