UBS's IPO allotment fraud: How to prevent falling victim
Swiss financial giant, UBS Group AG, has issued a public warning about unauthorized individuals misusing its brand for fraudulent investment schemes. The impostors are reportedly promising high returns and Initial Public Offering (IPO) allotments to unsuspecting investors. "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," stated UBS in its notice.
Exploiting desire for quick wealth
The fraudsters are exploiting people's desire for quick wealth by promising substantial returns on investments. However, they fail to provide any return and do not refund the initial investment amount. The misuse of reputable names like UBS is a common tactic in these scams. According to UBS's notice, these unauthorized individuals impersonate the brand name, logo, employee names, and pictures while falsely claiming association with "UBS Securities" or "UBS."
Operating deceptive online platforms
The fraudsters operate deceptive websites, domains, mobile applications, WhatsApp groups and publish misleading messages on social media. "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," UBS clarified in its public notice. The company has urged the public to be vigilant when dealing with individuals claiming to be UBS employees.
Tips to avoid falling victim to impersonation fraud
Sheetal R Bhardwaj, an executive member of the Association of Certified Financial Crime Specialists (ACFCS), has offered tips to avoid falling victim to such impersonation fraud. These include verifying the authenticity of communications from reputed companies, being skeptical of offers promising high returns with little risk, conducting thorough research before making investment decisions, and reporting suspicious activity to relevant authorities or the company being impersonated.
UBS Group's operations in India
In India, UBS Securities India Private Limited is a regulated entity primarily executing trades for institutional clients. It does not conduct proprietary trading or have any authorized persons. UBS Business Solutions (India) Private Limited provides IT and IT-enabled services to UBS group entities. The company has clarified that it does not cater to retail individuals in the country.
