Nithin Kamath Raises Alarm on Viral Scam Draining Investor Money via WhatsApp

In a recent LinkedIn post, Nithin Kamath, the founder and CEO of Zerodha, issued a stark warning about a rising investment fraud that has trapped thousands of unsuspecting investors across India, the WhatsApp investment scam. According to Kamath, this scam is now the most widespread and damaging among stock market cons, preying on the trust and aspirations of retail investors.

How the Scam Unfolds

Kamath detailed how the scam operates in a structured, deceptive manner, often impersonating credible financial institutions and figures.

Step 1: Fake WhatsApp Groups Mimicking Real Brands

Scammers first add individuals to WhatsApp groups with names that sound reputable, examples include “Zerodha Elite Traders” or “Premium Investors Club.” To make the group appear genuine, they use logos, colour schemes, and even SEBI registration numbers resembling official ones. What makes the deception worse is the impersonation of known figures. The group admins pretend to be Nithin himself, his brother Nikhil Kamath, COO Venu Madhav, or other Zerodha staff members.

Step 2: Flooding the Group with False Testimonials

Within hours, the chat is filled with screenshots showing extraordinarily high intraday returns, typically 100–200%. Testimonials from other supposed members reinforce the illusion. Kamath emphasised that these are completely fake, designed to establish credibility and lure victims deeper into the trap.

Step 3: Linking to Fake Apps and Platforms

Victims are then introduced to a so-called “premium signals” service. The scammers often share a link to a fake trading app that mimics Zerodha’s Kite platform. Once the user deposits money, the dashboard shows imaginary profits, with the app looking almost identical to the real one.

Step 4: Extraction of More Funds Under False Pretences

As soon as victims attempt to withdraw their earnings, the scammers introduce new hurdles. They claim that “processing fees”, “taxes”, or “account verification charges” must be paid first. These added payments are simply another ploy to extract more money. Once the scammers receive the funds, they disappear without a trace.

Zerodha’s Official Stand

Zerodha does not offer stock tips, investment advice, or operate any trading signal groups on platforms like WhatsApp or Telegram. Kamath stressed that all official communication is conducted solely through Zerodha’s verified channels.

How to Stay Safe

1. Be sceptical of unsolicited investment groups. If you are added to a WhatsApp or Telegram group offering stock tips, assume it’s a scam unless verified.
2. Check the source of apps and websites. Always download trading apps from official app stores and verify URLs from trusted sources.
3. Do not transfer money based on screenshots or testimonials. Genuine investment platforms do not guarantee returns, and certainly not triple-digit intraday profits.
4. Verify any SEBI registration claims directly via the SEBI website.
5. Report suspicious activity to cybercrime authorities or SEBI.

Final Thoughts

Kamath’s message is not merely a cautionary note but a call to action. Investors must remain vigilant and take ownership of their digital safety. The illusion of easy money remains one of the oldest tricks in the book, and in this digital age, it comes with a glossy interface and a familiar name.

As fraudsters grow bolder, it is imperative for all investors, seasoned or new, to cross-verify information, rely only on trusted sources, and avoid engagement with any platform or individual promising guaranteed returns.

Kamath urged people to share the warning with friends and family to help raise awareness and stop the spread of these scams.

Nithin Kamath Biography: Education | Family | Zerodha | Net Worth

Nithin Kamath is a Co-founder of the brokerage company Zerodha and Rainmatter. Know about Nithin Kamath’s education, family, children, success story, net worth, etc. Learn more about him on Nithin Kamath Wikipedia.

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