Is this trading tip a scam?
A message promises a sure shot, a 'jackpot' option or a coin that will 10x. You cannot tell from the words alone if the sender is honest - but you can check the message against the warning signs regulators publish, and check the sender against official registers. That takes two minutes.
The 8 warning signs
These are the signs that regulators such as SEBI in India, ASIC in Australia, the FCA in the UK and the SEC in the US list again and again. One sign does not prove anything. Three or more together is a strong reason to stop.
- A promised or 'guaranteed' return. No honest person can promise what a market will do. '100% sure', 'no loss', 'fixed 5% a week' are all the same promise.
- Very high returns per day, week or month. 2% a day sounds small. Compounded over a year of trading days it is more than 100 times your money. Nobody earns that steadily.
- Hurry. 'Only 3 seats left', 'offer ends tonight', 'enter before 9:20'. Pressure stops you from checking.
- Pay first. A joining fee, a 'VIP' group, a 'processing' or 'tax' fee before you can withdraw, payment in crypto (USDT) or to a personal UPI ID.
- Inside information or 'operator' stock. Real inside information is illegal to trade on. Tips that claim it are usually pump-and-dump: you buy so someone else can sell.
- A claimed licence with no number. 'SEBI registered' or 'ASIC approved' without a registration number you can look up.
- An app or website you have never heard of. Especially one that shows big profits but makes withdrawals hard.
- Very high accuracy claims. '95% accuracy calls'. Real traders with a lasting edge often win only about half the time.
Four checks that take two minutes
1. Look up the licence. In India, search the name or number on SEBI's lists of registered Research Analysts and Investment Advisers. SEBI also offers SEBI Check to confirm that a UPI ID belongs to a registered intermediary before you pay. In Australia, search ASIC professional registers and the Moneysmart investor alert list.
2. Check the maths. Turn any 'per day' or 'per month' claim into a yearly number. If it is bigger than the best fund managers have ever done, it is not real.
3. Ask for the full record. Every trade, with dates, including losses. Screenshots of winners prove nothing - anyone can show only the good ones.
4. Search the name with the word 'scam' or 'complaint'. And ask one person you trust before you pay anything.
How our free Tip Check reads a message: it looks for these warning signs in 20 languages and tells you which ones it found and how to check the sender. In our own tests on sealed sets of example messages written for testing, it flagged 92-98% of the scam examples with 0% false alarms on the honest examples; on 4,827 real everyday text messages it flagged none. Real messages may differ, so always check the sender too.
If you already paid
- India: call the cyber crime helpline 1930 quickly and report at cybercrime.gov.in. Complaints about a SEBI-registered person go to SEBI SCORES.
- Australia: call your bank straight away, then report to Scamwatch.
- Everywhere: do not pay anyone who offers to 'recover' your money for a fee. That is a common second scam.
Three real-looking examples, read slowly
"Guaranteed 3% daily profit with our AI trading desk. Minimum deposit $250. Withdraw any time."
3% a day is more than 1,000 times your money in a year of trading days. 'Guaranteed' plus a deposit to their own platform is the classic pattern. Signs: promised return, very high return, pay first, unknown platform.
"Operator stock alert! XYZ will hit upper circuit tomorrow. Buy before 9:30. Only for our members."
Claims of 'operator' or inside knowledge plus a deadline. If the stock is small, the people sending the tip may be the ones selling to you. Signs: inside information, hurry.
"Our SEBI registered analyst gives 90% accurate F&O calls. Pay ₹2,999 for 1 month."
This one may be legal - if the registration number is real. Ask for it, look it up on SEBI's list, and check the name matches. Even then, 90% accuracy says nothing about how big the losing calls are. Signs: accuracy claim, claimed licence without a number.
Why your brain likes these messages
Scam tips are written to push the same buttons: fear of missing out, trust in someone who seems expert, and the comfort of seeing other people win. Knowing this does not make you immune, but slowing down does. A good habit: never pay or trade on a tip on the same day you first see it.
Tip Check shows which published warning signs a message matches. It cannot prove a message or person is safe or a scam.
Frequently asked questions
- How do I know if a stock tip is genuine?
- Check the sender's registration number on the regulator's official register, ask for a full trade record including losses, and check the message for promised returns, hurry and pay-first requests. A genuine adviser can show a licence number you can look up.
- Is a SEBI registered tip provider always right?
- Registration means the person is regulated and you have a place to complain. It does not mean their calls will make money. Losses are still possible.
- Can Tip Check say a message is a scam?
- No. It shows which published warning signs the message matches and how to check the sender. It cannot prove a message or person is honest or a scam.
- Is Tip Check free?
- Yes. Tip Check is free, needs no sign-up and does not store the message you paste.
Check the tip you were sent
Paste the message or upload a screenshot. Tip Check shows which published warning signs it matches and how to check the sender. Nothing is stored.