Wisdom Youth calls for action against startup investment frauds
The State council of the Wisdom Youth Movement has urged the government to curb financial fraud carried out in the name of startups and strengthen
The State council of the Wisdom Youth Movement has urged the government to curb financial fraud carried out in the name of startups and strengthen safeguards for investors. A meeting of the council held at Tirur on Sunday (July 12, 2026) observed that while startups contribute to economic growth and job creation, fraudulent schemes exploiting the sector to raise public investments are on the rise.
It called for action against firms that lure investors with promises of high returns using terms such as artificial intelligence, blockchain, digital assets, and other emerging technologies. The council sought a transparent regulatory framework for startups accepting public investments, including mandatory financial disclosures, regular audits, stronger investor protection measures and a robust registration system. It also called for amendments to financial fraud laws to ensure speedy investigation and prosecution.
The council advised the public to be cautious of schemes offering unusually high returns, vague business models, referral-based incentives and unverifiable financial claims, and urged youth to promote financial literacy. In a statement, the council said protecting genuine startups while acting against fraudulent operators was the responsibility of both the government and society. The meeting also approved its si month action plan, including the ‘Toofan Catalyst’ campaign and an anti-drug campaign.
T.K. Ashraf, State general secretary of the Wisdom Islamic Organisation, inaugurated the meeting. Wisdom Youth State president T.K. Nishad Salafi presdied over the function. V.S. Joy, MLA, launched the Toofan catalyst campaign.
The BriefWire