“The impersonator(s) are targeting the public and luring the public to invest in certain fraudulent schemes/ plans promising high returns or profits within a short period, including purported trading in initial public offering (IPO) stocks for this purpose,” said UBS in the public notice.
How does the fraud work?
The imposters prey on your greed by promising you terrific returns on your investment. Only that instead of getting any return on your investment, they will not even return you the investment amount. All your money will be lost and taken away, forget about getting any return on it. The primary reason behind people falling for this imposter scheme is greed for more money (get rich quick) and using reputed names such as UBS, etc.
According to the public notice by UBS, the unauthorised persons are impersonating the brand name, logo, employee names and their pictures and then falsely holding themselves to be associated with “UBS Securities” or “UBS” by operating fraudulent websites, domains, mobile applications, and WhatsApp groups and by publishing fraudulent messages on social media sites.
“UBS Group AG and any of its group companies whether in India or overseas do not operate and/or support such websites, domains, WhatsApp groups, social media sites or mobile applications; nor advertise such schemes/plans,” said UBS in the public notice.
What should you do to prevent falling victim to such impersonations of reputed companies?
Sheetal R Bhardwaj, executive member of the Association of Certified Financial Crime Specialists (ACFCS) shares some tips that you can follow to prevent falling victim to such impersonation fraud:
- Verify sources: Always verify the authenticity of communications claiming to be from reputable companies. Check the official website or contact customer service directly.
- Be skeptical of too-good-to-be-true offers: High returns with little risk are often red flags. If an investment sounds too good to be true, it probably is.
- Research investment opportunities: Conduct thorough research and seek advice from financial professionals before making any investment decisions.
- Report suspicious activity: If you encounter a potential scam, report it to relevant authorities or the company being impersonated. This helps prevent others from falling victim.
What services does UBS offer in India?
UBS is an investment bank that caters to institutional investors. They certainly do not cater to retail individuals. “In India, UBS Securities India Private Limited is a regulated entity and does not conduct proprietary trading neither does it have any authorised persons. The firm primarily executes trades for institutional clients. UBS Business Solutions (India) Private Limited is engaged in the business of providing Information Technology (IT) and Information Technology Enabled Services (ITES) to the entities of the UBS group,” said UBS in the public notice.
UBS also stated in the public notice that UB Group AG and/or any of its group companies shall not be held responsible or liable in any manner whatsoever, for any claims or losses caused in this regard. “Please exercise caution while dealing with persons claiming to be employees/ officials of ‘UBS’ and or when such investment services are solicited to you in the name of UBS. If you come across any such activity, report the same to the appropriate law enforcement authorities, including the police and cybercrime cell, at the earliest,” said UBS in the notice.
What is the global impact of impersonation and such fraudulent schemes?
As per Bhardwaj, impersonation of reputable companies is a significant global issue, particularly in the realms of finance and investment.
“Cybercriminals often use the names of established companies to create a false sense of legitimacy, which can lead to considerable financial losses for unsuspecting individuals. The rise of online communication and social media has made it easier for scammers to reach a wide audience, increasing the number of potential victims. According to reports, billions of dollars are lost annually to investment fraud, with impersonation schemes being a leading cause,” she says.
