How can Indian investors check for US pre-IPO scams and verify a broker?
Our answer
Treat a guaranteed allotment or request to send money to a personal account as a warning sign. Verify the broker’s legal entity and contact details in the appropriate regulator register, and independently confirm the issuer and the offer documents. Reach the broker through the contact listed by the regulator.
Check the exact entity
Search by registered company name and compare its website, phone and permissions. A cloned site can borrow a real firm’s licence number.
Check the offer separately
A registered firm or a publicly filed document does not prove a message or payment request is genuine. Confirm the payment instructions through an independently verified channel.