Fraudsters using the name, logo and office address of the country's main capital market, Dhaka Stock Exchange (DSE), to defraud investors have already come under the scanner of intelligence agencies.
Acting Managing Director (MD) of DSE Asadur Rahman said this at a press conference at the Auditorium of Capital Market Journalist Forum (CMJF) at Paltan on Tuesday.
“Those fraudsters were falling for the trap of fraud through online means including WhatsApp. They may soon come under the law. Still, investors should be aware,” he pointed out.
DSE Chief Regulatory Officer (CRO) Shafiqul Islam Bhuiyan and Deputy General Manager Md. Shafiqur Rahman was present at the press conference.
Asadur warned investors that the only legitimate way to invest in the capital market is through stock brokers approved by the Bangladesh Securities and Exchange Commission (BSEC), DSE and Chittagong Stock Exchange (CSE). Investing through any other means may turn into fraud.
He said that some fraudulent groups are using the names of DSE and BSEC to lure people to invest.
“We have informed law enforcement and intelligence agencies about this. With their help, work is underway to identify the fraudsters and bring them under the law”, he warned.
The acting MD also said that DSE wants to inform investors that the stock exchange or regulatory agency is not directly involved in investing with anyone. The only legitimate way to invest is through an authorized stock broker.
Therefore, “If you fall for the temptation of an unknown person or group, your money will be at risk. If anyone is involved in fraud, we warn them - there is still time to get better. Otherwise, the law enforcement agencies will take strict action”, he said.
In response to a question from journalists, the acting MD of DSE admitted that sometimes allegations of involvement are made against some DSE officials. We are aware of such incidents and are ready to take action if necessary.
Asadur said that fraudsters mainly use AI to send tempting messages on social media. Initially, they gain the trust of the victims by showing a small profit.
Later, after showing some more profit, they lure them to invest a large amount of money. When the investor pays the money, they are informed that there is a problem with the app and more money has to be paid. But after taking the additional money, the fraudsters block the victim.
At the press conference, DSE said that investors must be careful to avoid such traps of fraud. Transactions should be made only through approved stock brokers. The list of approved brokers is available on the official websites of DSE and BSEC. It has been urged not to respond to tempting offers from unknown persons or on social media.