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Zerodha clarified it does not offer any advisory services or personalised investment recommendations.
This fraudulent activity is concerning for Zerodha.
Zerodha, one of India’s leading discount brokerage platforms, back in August, issued a cautionary alert for its vast user base and stock market investors about an ongoing fraud scheme using its brand identity.
Zerodha informed its community that these groups misuse its logo and brand name to appear authentic, often adopting names like “Zerodha Trading Club.”
According to a press release from Zerodha, scammers are actively leveraging the company’s logo and reputation to create fake websites, trading apps, and online platforms, where they are misleading people into investing and charging them fees for supposed advisory services. Zerodha clarified that it does not offer any advisory services or personalized investment recommendations, warning investors to steer clear of websites, trading apps, WhatsApp groups, and other platforms that misuse its branding to attract unsuspecting users.
The scam involves fraudsters who impersonate Zerodha representatives or employees, claiming to have insights or recommendations on stock investments. These individuals falsely present themselves as financial advisors, urging users to invest funds based on their guidance and charging a fee for these “advisory” services. Zerodha has emphasized that it does not provide any direct outreach to customers regarding investment advice, nor does it collect fees for offering stock tips or managing portfolios. Zerodha has no affiliation with any entities claiming to be its advisors and clarified that they do not offer personalized calls, stock tips, or portfolio management services of any kind.
This fraudulent activity is concerning for Zerodha, as it not only impacts the company’s reputation but also puts investors’ funds at significant risk. Zerodha strongly reiterated that any investment decisions should only be made through its official channels, such as the Zerodha Kite app and website. The firm also reminded its users that they would not be liable for any financial losses resulting from scams involving impersonators or fake advisory services. To protect themselves, investors are encouraged to validate the authenticity of any communication claiming to represent Zerodha, especially if it involves payment requests for advisory services.
In light of these issues, Zerodha is appealing to investors to report any suspicious activity they encounter. If anyone has been approached by individuals or platforms falsely claiming association with Zerodha, they are encouraged to contact the brokerage firm directly via email at legal@zerodha.com to help curb this fraudulent activity.
As of August 2024, Zerodha serves a robust community of approximately 7.2 million users. Over the years, it has maintained a reputation for transparency and frequently communicates with its investors regarding security concerns, market risks, and safe investment practices.
