Digital investment scams cost investors $7b in 2025

Digital fraud has emerged as a major concern for investors in the country's capital market, with scammers using fake investment offers, rumours of share price surges and promises of quick profits to swindle money from unsuspecting people.

According to the Dhaka Stock Exchange (DSE), investors lost $7 billion to digital scams in 2025. Scammers used various social media platforms, including 81 Messenger groups, more than 1,000 pages and 25 WhatsApp groups, to carry out the fraud.

The figures were presented at an event marking World Investor Week 2026. Speakers said inadequate investment knowledge, the pursuit of quick profits and decisions made without proper verification were leaving many investors vulnerable to fraud. They stressed the need to raise investor awareness and strengthen the effectiveness of registered institutions to address the problem.

The discussion highlighted several forms of digital fraud, including promises of huge profits within a short period or lottery winnings, false claims on Facebook and Instagram that particular shares would surge in price or that scammers possessed confidential company information, and fake websites designed to resemble those of legitimate brokerage houses or stock exchanges to steal investors' personal information and money.

Mahathab Osmani, president of the Chartered Financial Society, said investors should be wary of any individual or institution guaranteeing consistently high double-digit returns and promising that there would never be any losses. Such guarantees were unrealistic in the stock market, he said, advising investors against seeking investment advice from people or organisations making extraordinary profit claims.

Asifur Rahman, vice-president of the Institute of Chartered Accountants of Bangladesh, said many investors bought shares without assessing companies' financial strength. Failure to read audit reports and financial statements or heed auditors' observations often left them unaware of investment risks, he added.

Speakers stressed the importance of examining audit observations, particularly auditors' opinions and key audit matters, to identify potential risks. Reviewing such information can help investors understand weaknesses in a company's financial position before making investment decisions.

DSE Chairman Mominul Islam said the exchange was working to modernise its monitoring and surveillance systems to combat digital fraud.

He said greater emphasis was being placed on using artificial intelligence (AI) to improve the detection of fraudulent activities.

The DSE would also work in coordination with the Bangladesh Securities and Exchange Commission (BSEC) to raise investor awareness, he added.

Speakers said stronger surveillance alone would not be enough to prevent digital fraud, urging investors to develop the habit of verifying information circulated on social media. Before buying shares, investors should check the identity and registration status of companies, brokerage houses and investment advisers. They should also avoid clicking links from unknown individuals or organisations and sharing personal details, passwords or financial information.

The speakers also called for a unified public verification platform to strengthen investor protection. Such a platform would enable investors to check the registration, identity and authorisation of relevant institutions and individuals more easily, helping them identify fraudulent entities and reduce the risk of scams.

They said restoring confidence in the capital market required coordinated efforts involving regulatory oversight, accountability among registered institutions and improved financial literacy. They also stressed the need for prompt fact-checking and effective alert systems to counter rumours and fraudulent investment offers spreading through digital platforms.