Scam alert: Zerodha co-founder Nithin Kamath shares shocking scam details, says ‘everyone is a target’

Zerodha co-founder Nithin Kamath  shared shocking details about a scam on Wednesday. Nithin Kamath shared the experience of a person he knows, who got scammed recently and lost more than ₹5 lakh. The shocking details around the scam reveal how fraudsters are now enticing people by displaying short-term gains and then trapping them for extracting a larger amount.

“Someone I know got scammed & lost money. It started with a response to a part-time job offer on WhatsApp. The first few tasks were about leaving fake reviews for resorts & restaurants in random places like Peru. ~ ₹30k was transferred to the bank for the tasks completed," Kamath said in a Twitter thread.

Scam alert: Zerodha co-founder Nithin Kamath shares shocking scam details, says ‘everyone is a target’

Zerodha CEO added that after giving him 30,000, the scammers added the victim to a Telegram group and the next task was to trade on a mock crypto platform. The scammers allowed the victims to withdraw profits from the trade without investing any real money.

“By the way, this wasn't Bitcoin or Ethereum, but random crypto tokens whose prices fraudsters could easily manipulate. The group was now asked to transfer real money to generate higher returns. Others in the group claiming to transfer nudged my friend to do so as well," Kamath said.

Scam alert: Zerodha co-founder Nithin Kamath shares shocking scam details, says ‘everyone is a target’

“I guess the risk didn't seem much since the money transferred was the ₹30K earned through the platform. But greed took over, and more money was transferred, probably due to peer pressure from others in the group who claimed to have made large transfers and profits," the next tweet said.

Nithin Kamath further added that now the victim tried withdrawing the money, but was told that he needs certain minimum trades. Fearing to lose, a large sum, the victim kept trading and with time deposited ₹5 lakh with the platform.

“The platform offered a loan when the person said there was no more money to add. The person finally decided to confide with the spouse about the situation, who almost immediately realized it was a fraud. They reached out to the police for help," he said.

“The account seemed like a real crypto account, with account balance, ledger, P&L, etc. But it was all fake; everything on it was manipulated, including the telegram group. The crypto price movements were also manipulated to generate profits and sow greed at the start," Kamath added.

Kamath said that police shared many such cases where educated people lost money to these kinds of scams. He warned that everyone is a target the important thing to remember is that there is no easy way to make a lot of money quickly.

“This problem is being faced not only by persons seeking jobs, but also by companies who such perpetrators are impersonating. One must also remember that it is extremely unlikely that a company offering a job would ask a potential employee to make any payments or provide any documents on WhatsApp. If anyone receives a job offer on WhatsApp, it is always advisable to cross verify with the company purporting to offer the job, so as to be sure that the offer is genuine. The contact details of most companies today are available on the websites of those companies," Rushad Irani Principal Associate Pioneer Legal said.

This article taken by livemint.com

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