Women today are managing more money than ever running households, investing, starting businesses, and building wealth independently. But with greater financial power also comes greater risk. Scammers and fraudsters are getting smarter, designing traps that are often emotional, social, or even disguised as “friendly advice.”

Here’s how women can protect themselves from some of the most common and growing financial scams and what red flags to look out for.

1. Beware of Fake Financial Apps and Links

A growing number of scams now happen through fake investment or banking apps that look nearly identical to genuine ones. They often promise unusually high returns or offer “exclusive investment schemes” that require quick action. Once you share your KYC or transfer money, it vanishes.

How to stay safe:

• Always download apps only from official app stores and verify the developer’s name.
• Cross-check the app’s legitimacy on the official website of the bank, NBFC, or AMC.

In 2021[1], the Reserve Bank of India (RBI) issued repeated warnings against unauthorized digital lending and investment apps that were stealing customer data and money.

2. Don’t Blindly Trust “Finfluencers”

Social media is full of so-called financial influencers who make investing look easy and glamorous with “Double your money in 3 months” or “I made ₹5 lakh by investing in ‘XYZ’ through my phone.” Many are unregistered, and some are even paid to promote risky or fraudulent products without disclosure.

How to stay safe:

• Always check if the person giving advice is a SEBI-registered investment advisor (RIA) or a certified financial planner.
• Be cautious of anyone promising guaranteed returns, no legitimate investment can do that.
• Never invest just because something is trending on Instagram or YouTube.

Example: SEBI[2] has tightened regulations around finfluencers, warning that unregistered financial advice can lead to scams or losses.

3. Peer Pressure and “Kitty Party” Traps

Fraudsters often exploit social circles like kitty parties, informal savings groups, or even know chat groups, to promote dubious schemes. Because the recommendation comes from someone you trust, you may lower your guard.

Many women end up investing in unregulated chit funds, Ponzi schemes, or fake gold savings plans and lose their money when the organiser disappears.

How to stay safe:

• Don’t confuse familiarity with safety and always verify if a scheme is regulated by SEBI, RBI, or IRDAI.
• Insist on documentation with written terms, disclosures, and a registered company name.
• If you don’t fully understand how the scheme makes money, don’t invest.

Case in point: The infamous Rose Valley chit fund scam[3] defrauded thousands of investors across India, highlighting the risks of unregulated community schemes.

4. Pressure to “Invest Quickly”. That’s A Classic Red Flag

Scammers thrive on urgency. If someone says, “Offer ends today,” “Sign up in 10 minutes,” or “Only 5 slots left,” take a step back. Real investment opportunities don’t need you to rush. So, if you feel rushed, pressured, or emotionally manipulated into an investment, just walk away.

Final Safety Checklist for Women Investors

• Verify the platform or person and check regulatory registration.
• Pause and think. Don’t act under pressure.
• Use trusted channels i.e. official apps, bank websites, SEBI/RBI-approved intermediaries.
• Discuss big decisions with a certified advisor or a financially knowledgeable family member.
• Report suspicious activity to your bank or the National Cyber Crime Portal

The Bottom Line

Financial independence is empowering but only when it’s protected. By staying alert, questioning too-good-to-be-true promises, and choosing regulated channels, you can safeguard your hard-earned money and let it grow with confidence.