However, the perpetrators of such frauds are now adopting new methods and technologies to defraud the investors. Perpetrators of such fraud use various marketing techniques to attract subscribers on their social media channels. Following this, Sebi, in an order passed in January 2022, established that the administrators of a Telegram channel having a large subscriber base enticed the subscribers to act upon recommendations that were circulated by those administrators on the channel, leading to significant price and volume impact in various scrips. Although some channels have been removed, the curation process is considered opaque and insufficient by analysts. Additionally, investors are often instructed to deposit monies into personal bank accounts of individuals who claim to represent a legitimate entity, and/or into an unrelated corporate account. To lend credence and to lure unsuspecting victims, perpetrators usually claim that their entity and/or the investment schemes are approved by financial authorities.
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