Regulators in India, the United States and the United Kingdom have each warned, in their own words, about the same trick: a picture of profit that is not what it looks like. The picture changes. It can be a screenshot from someone else's account, a handful of winning trades, or a trading platform that shows gains that never existed. This post collects what the SEBI, FTC, FCA and SEC documents say and turns it into a checklist for any track record you are asked to trust. It names no person or firm.

A track record is the main sales pitch for courses, signal groups and "mentorships". If you can read one properly, you can skip most of the expensive mistakes.

Quick timeline

Every case below is an allegation or a regulator's finding in a document that can be challenged. We say which.

Date What the document says Where it is recorded
8 April 2014 The SEC alleges that screenshots of other people's brokerage accounts were used to attract investors (administrative proceedings, allegations) SEC press release 2014-72
12 February 2020 The FTC says it alleged that a trading school's live trades and success stories were often fabricated FTC consumer alert
11 April 2025 SEBI cautions the public about fake advice, fake testimonials and fake certificates on social media SEBI press release 22/2025
6 June 2025 (updated 20 February 2026) The FCA leads a week of action and says some promoters show off wealth that is often false FCA press release
22 December 2025 The SEC files a complaint alleging fake trading platforms where no trading took place SEC press release 2025-144
29 September 2026 The SEC files two complaints alleging a fake platform with invented profits and trading bots that did not exist SEC press release 2026-95
23 October 2026 SEBI's final order against a trading school tests advertised profits against exchange data (civil order, can be appealed) SEBI order

How are fake trading profits staged?

The regulators describe seven methods. Some cases combine several.

Someone else's account. In 2014 the SEC alleged that a person posted screenshots of brokerage statements to suggest strong returns, when the accounts did not belong to her. It said the images helped attract money for her self-described hedge fund. The agency started administrative proceedings, and its page reports no outcome.

Made-up live trades and success stories. The FTC wrote in 2020 that it had alleged a trading school showed live trades and success stories that were often fabricated. It also alleged the school had no basis for its earnings claims. Those were allegations when the alert was written.

Only the winners, or profits that do not add up. SEBI's October 2026 order gets its own section below.

A platform that shows gains that never happened. In December 2025 and September 2026 the SEC filed complaints describing a similar pattern. It alleges that people in WhatsApp groups posed as investment professionals and shared tips said to be generated by AI. In December 2025 it described trading platforms that were fake, with no trading taking place. In September 2026 it described a platform that showed invented profits. When victims tried to withdraw, the SEC says they were asked for advance fees. These are allegations at the complaint stage, and the releases report no ruling.

A lifestyle as proof. The FCA says some promoters use a showy and often false display of wealth to suggest success. An FTC consumer alert tells readers to be sceptical of any pitch about quitting a job or living lavishly.

Fake credentials. SEBI warns about firms that show fake certificates said to come from SEBI. The SEC alleges that one scheme claimed SEC certification and posted a falsified filing.

Private groups and pressure. SEBI lists chat groups with names like "VIP group" and "Institutional Trading group" as a common way to pull people in. The FTC alert describes free preview events, rising costs and short-term loans.

What did SEBI's October 2026 order test?

The 171-page order is dated 23 October 2026 and is a civil order, so it can be appealed. It concerns a trading school. We leave out the names, and here is only the part that helps you check a track record.

SEBI recounts an earlier examination. It says the school published selected profitable trades, while SEBI's own analysis showed trainers and participants with net losses, and that it issued an administrative warning on 1 March 2024. The school disputes SEBI's comparison. It argues, among other things, that its testimonial subjects did make profits in the periods shown.

The order then tests individual testimonials against exchange-derived profit-and-loss data. The results are mixed, which makes them useful:

  • In one case, a testimonial advertised a trading profit of Rs 43.2 lakh from May 2023 to September 2024 and carried a "Validated by verified P&L" banner. A lakh is 100,000 rupees. The exchange data showed a net loss of about Rs 5.6 lakh. SEBI found the false portrayal of profit established on the balance of probabilities.
  • In another case, SEBI did not uphold the allegation. Its calculation had left out options that were sold and expired worthless, and the premium kept on those is profit even though no closing trade exists. The order says the claim "does not stand established".
  • The order says capital paid into an account must be excluded from trading income.
  • It says consent to share a testimonial shows permission, not that the numbers are right.
  • It says showing some losses does not by itself prove a profit claim is true.

The same order says calling a programme "education" does not change what services were actually supplied. That finding is SEBI's, and it can be appealed.

How do you check a track record?

The regulators warn but do not publish a method. These steps are ours, built on what their documents show.

  1. Ask for the statement, not the screenshot. You want the full date range, every closed trade, and the deposits and withdrawals, with the account number partly hidden. A screenshot shows one moment, and the SEC's 2014 allegation shows it can come from another person's account.
  2. Separate profit from deposits. SEBI's order says capital paid in must not count as profit. Compare the growth of the balance with the money added to it. Also check that costs are included and that positions which expired are counted.
  3. Find out whether it is live or demo. A demo account uses virtual money. Ask which broker holds the account and look the broker up on its regulator's register. SEBI points to its intermediaries list, and the FCA points to its Warning List.
  4. Prefer a record that did not pass through the seller. A statement pulled straight from the broker by an independent service, or reviewed by an accountant, is stronger than a PDF sent in a chat. A verified account is still one account, so ask how many were run.
  5. Spot-check three trades. Take the date and time of a trade and compare its entry and exit with a neutral price history for that minute. A price that does not match the market at that time is a red flag.
  6. Look at the shape, not the total. Ask for the equity curve, the worst drawdown and the number of trades. A short run is not proof (sample size).
  7. Test the money, not the number. A fee, tax or deposit demanded before you can withdraw is a warning sign. The SEC's complaints describe that request.
  8. Check who is selling. SEBI says to deal only with registered intermediaries, and it warns that unregistered ones give you no access to its complaint system.

A real record also has to be possible to repeat. If the seller cannot show how many trades there were, what they risked each time and what happened on the bad weeks, the number alone tells you little.

What the other sides say

Most of the documents report no reply. The SEC and FTC pages we read do not carry a response from the people they describe, and the SEC cases are at the complaint stage. In SEBI's order the school disputes the comparison and says its testimonial subjects made profits in the periods shown. SEBI accepted some of the school's objections and rejected others.

What traders can take from it

A trader's own record is the one you can trust, because you can check where it came from. A journal that imports your own broker data, such as SetupBook, produces the kind of statement you would want from anyone else: every trade with its time, deposits kept apart from profit, losses included. The trading journal page explains the basics.

The same habit protects you when you are the one asked to believe. Keep a dated copy of any claim that persuaded you to pay, and compare it with what you later see.

Frequently asked questions

How can I tell if trading profit screenshots are fake?

You usually cannot tell from the image. Ask for the full broker statement for a stated period, with deposits and withdrawals, and compare it with the screenshot. Check that the account is live and held by a broker you can look up.

What is a verified track record?

It is a record that did not pass through the person selling. Examples are a statement pulled directly from the broker by an independent service, or accounts reviewed by an accountant. It still covers only the accounts it shows.

Does showing losing trades make a track record believable?

Not on its own. SEBI's October 2026 order says that disclosing some losses does not by itself prove a profit claim is true. You need the complete result for the period.

How do regulators say I should check someone selling trading advice?

SEBI says to use its list of registered intermediaries, and the FCA says to check its Warning List before you invest. Both also describe guaranteed or risk-free returns as a warning sign.

Where can I report fake trading results?

SEBI invites reports of unregistered advisory services through its Market Intelligence portal, and the FTC takes reports at ReportFraud.ftc.gov. Other countries have their own regulators.

Sources

This post is based on public sources as of October 30, 2026. Found a mistake? Write to info@setupbook.io.