Nithin Kamath warns of fake trading apps that are ‘too good to be true’: ‘Always remember…’

Zerodha co-founder Nithin Kamath warns against fake trading apps mimicking major brokers, urging skepticism about easy money claims.

Fake apps that mimic leading broker interfaces and manipulate users with the dream of easy money are dangerous, Zerodha co-founder Nithin Kamath warned. In a post on social media platform X, Nithin Kamath said that such apps even fool “smart” and "sensible" people.

Fake trading apps deceive users with promises of easy money, warns Zerodha's Nithin Kamath, advising caution and vigilance.

Sharing a video on such scams, he wrote, "Fake trading app scams have exploded and have become a mega nuisance. These scams work by inducing you to trade and making you think that making money is easy. So first, you are added to WhatsApp groups and then asked to install fake trading apps that look exactly like those of major brokers".

Explaining their strategy, he said that in the first couple of trades, these apps let you make money in order to convince you that you can make a lot of money. After this, the apps ask you to transfer money to trade but when you try to withdraw your 'profits', these app operators ask you to make an upfront payment and then they vanish.

A user commented on the post saying, “These scams are getting more sophisticated by the day. Even the sharpest minds can fall for them when greed and urgency take over. Always double check before you invest, especially with 'too good to be true' offers. Education and vigilance are key.”

A second wrote, “It’s shocking how convincing these fake trading apps can be. Even the sharpest minds can get lured in by the promise of easy money. It’s a good reminder that if something seems too good to be true, it probably is. Stay sharp and always double-check before you invest!”