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His warning comes after the Enforcement Directorate (ED) reportedly froze trading accounts holding around Rs 200 crore in an alleged WhatsApp-driven pump-and-dump scheme involving two listed companies.

In a post on X, Kamath said it was surprising that investors continued to fall for such schemes even in 2026. He also warned that the problem could worsen as the stock market cycle progresses. KAMATH SAYS INVESTORS STILL FALL FOR STOCK MARKET SCAMS

"It's crazy that even in 2026, people still fall for stock tips on WhatsApp, Telegram, SMS, and social media. This is probably the silliest way to lose money," he wrote.

Such messages often promise unusually high returns in a short period and create a sense of urgency, pushing investors to buy shares without checking the company's fundamentals or understanding the risks involved.

Investors may be attracted by claims of insider information, guaranteed profits or recommendations from people who appear knowledgeable about the stock market. However, these claims can be part of a plan to mislead buyers and manipulate share prices.PUMP-AND-DUMP SCHEMES MAY INCREASE, WARNS KAMATH

Kamath said the problem could become more widespread, pointing to the growing number of alleged stock manipulation cases involving messaging groups and social media influencers.

"Given how late in the cycle we are, these instances are only going to increase," he said.

He added that cases involving WhatsApp groups and influencers promoting initial public offerings (IPOs) and stocks were already becoming more visible.

"We're already seeing more pump and dumps, whether through WhatsApp groups or influencers peddling IPOs and stocks. This won't end well," Kamath wrote.

In a pump-and-dump scheme, individuals or groups attempt to drive up a stock's price by spreading misleading information or creating artificial demand. Once the price rises, those behind the scheme sell their holdings, often leaving investors who bought at higher prices with losses.

Such schemes can be particularly risky for retail investors who enter the market based on recommendations without independently checking the information.

Kamath's warning follows reports that the ED froze trading accounts holding around Rs 200 crore in connection with an alleged WhatsApp-driven pump-and-dump operation involving two listed companies.

The reported action has once again drawn attention to the risks of stock manipulation and the role that online messaging platforms can play in spreading misleading investment advice.

While messaging apps and social media make financial information easier to access, they can also allow unverified claims to spread quickly. Investors may find it difficult to distinguish genuine market analysis from promotional messages designed to influence share prices.

The key risk is that investors may act on these recommendations without knowing who is behind them, whether the information is reliable or whether the person promoting the stock stands to benefit from their purchase.

Kamath also suggested that investors can use artificial intelligence tools to examine suspicious investment messages before acting on them.

"So the next time you get a message promising easy money, just ask Claude or ChatGPT whether it's a good idea. It could save you a lot of money," he said.

Kamath ended his post with a familiar saying that remains particularly relevant to stock market investing. "It's become a cliche, but nowhere is 'if it's too good to be true, it probably is' truer than in the stock market," he wrote.- Ends