Amid the cases of financial scams on the rise, founder, and CEO of online brokerage firm Zerodha, Nithin Kamath, on 13 November said it is scary how many people fall for various financial scams.
He even suggested methods to protect themselves from such scams, where people fall for fake job offer scams, scammy high-return investment schemes crypto investments, etc.
Taking to X, Nithin Kamath wrote, “The scale of pig butchering scams in India runs into tens of thousands of crores. It is scary how many people fall for fake job offer scams, scammy high-return investment schemes, and crypto investments, etc.”
According to details, pig butchering is a cyber scam where scammers act like a friend or romantic partner. They trick people into giving them money for fake investments or jobs and then run away with the money.
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“As the name implies, a pig butchering scam involves fattening the victim before butchering,” Kamath said in the post.
How do these scams work?
Kamath said scammers gain the trust of users by using fake profiles, and by using the pretense of love and friendship to gain the trust of users. “These scams are global, and their scope is staggering,” he said.
“What makes these scams even more cruel is that the person scamming could also be a victim of another type of scam. Many fall into the trap of international job offers from scammy companies. Once abroad, they are held captive and forced to scam Indians by building trust using social media platforms, typically using fake profiles of the opposite sex,” he added.
Ways to protect self?
Suggesting some tips to protect from pig butchering scams, he said:
1) Never reply to unknown messages on WhatsApp, social media platforms, and dating apps.
2) If someone asks you to download some new apps or open links, that’s a red flag.
3) These scams rely on exploiting your emotions like hopes, fears, dreams, and greed. Never react in a hurry.
4) Don’t panic. Most people fall for these scams because they react in a hurry.
5) When in doubt, go to the nearest police station or talk to a lawyer.
6) If someone promises something like a job or high returns or asks you for money, it’s a red flag.
7) Never share personally identifiable information like your Aadhaar, passport, or your financial information like bank details, investment details, etc.
8) If it sounds too good to be true, it probably is.
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