DSE warns investors against rising stock market scams on social media

The Dhaka Stock Exchange (DSE) has sounded an alarm over rising incidents of stock market fraud carried out through social media platforms, urging investors to remain alert.

Various groups are defrauding people by creating WhatsApp groups using the name, logo, and office address of the prime bourse, and by promising extraordinary gains from stock market investments, said Mohammad Asadur Rahman, Acting Managing Director of the DSE, at a press briefing on Tuesday.

He warned investors not to fall prey to fraud rings that lure people with promises of high returns via WhatsApp, Facebook, and other social media platforms.

He noted that one such fraudulent group operating out of Narayanganj has already been identified by intelligence agencies. The DSE filed an official complaint with Khilkhet Police Station on August 3, and relevant law enforcement and intelligence agencies are actively investigating the matter.

"There is no opportunity to trade in the stock market without using licensed stockbrokers, stock dealers, or mobile apps approved by the stock exchange. Therefore, I urge everyone not to be lured into trading through any other means," said Mr. Rahman at the press briefing held at the CMJF auditorium in Dhaka.

He also advised investors to verify any suspicious investment offers by calling the contact numbers listed on the official websites of the DSE, CSE, and BSEC.

To safeguard investors and raise awareness, the DSE has informed the securities regulator, brokerage houses, Central Depository Bangladesh Limited (CDBL), banks, and other related organisations through official letters.

At the press conference, Mr. Rahman said that recently several fraudulent groups, especially on WhatsApp, have been enticing investors with false promises of stock market profits. The DSE has received evidence of multiple such groups.

Describing a specific incident, Mr. Rahman said that fraudsters initially take a small amount of money from general investors by promising high profits. For instance, they may take Tk 4,000 initially and return Tk 2,000 as "profit" within two days to build trust. Later, they ask for Tk 40,000, claiming technical issues are delaying further profits. Then they ask for an additional Tk 40,000 to "resolve" the problem. After receiving the money, they turn off their phones and disappear.

"There is no possibility of guaranteed profits in the stock market," Mr. Rahman emphasized.

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