Nithin Kamath, CEO & Founder of Zerodha has warned users about a new scam from miscreants in China and other Asian countries who are creating lookalike fraudulent websites and apps of Indian brokerages and trading firms to trick innocent users into downloading these apps or carrying out money transfers through these duplicate portals.
In a post on X, Kamath wrote "After the Chinese loan apps scam, the latest scam from actors in China and other Asian countries is phishing websites. Fraudsters are creating hundreds of websites and trading apps that look similar to the websites of Indian brokers. Unwitting users who click on the app download links, etc., will be prompted to download the fake app. The goal is to get people to transfer money by taking advantage of their familiarity with these apps. This is just another one of the hundreds of international scams that have exploded in the last few years."
After the Chinese loan apps scam, the latest scam from actors in China and other Asian countries is phishing websites. Fraudsters are creating hundreds of websites and trading apps that look similar to the websites of Indian brokers.
February 15, 2024
Unwitting users who click on the app download…He also pointed out how this is just one of the many international scams which have surfaced online.
Referring to another such scam called 'Pig Butchering Scam' he also shared a few tips on how users can protect themselves from such kind of financial scams.
Tips to protect oneself from financial scams
Never reply to unknown messages on WhatsApp, social media platforms, and dating apps.
If someone asks you to download some new apps or open links, that's a red flag.
These scams rely on exploiting your emotions like hopes, fears, dreams, and greed. Never react in a hurry.
Don't panic. Most people fall for these scams because they react in a hurry.
When in doubt, go to the nearest police station or talk to a lawyer.
If someone promises something like a job or high returns or asks you for money, it's a red flag.
Never share personally identifiable information like your Aadhaar, passport, or your financial information like bank details, investment details, etc.
If it sounds too good to be true, it probably is.
Here's how netizens responded to Kamath's post
Many users called for strict actions against such apps but also called for far more stringent rules and long-term solutions by online platforms and app stores to curb the menace of fraudulent apps/websites.
Here are some responses
Online platforms and app stores also bear a responsibility in curbing the proliferation of fraudulent apps/websites.
February 15, 2024
Implementing stringent verification processes & regularly monitoring for suspicious activity can help prevent fraudulent entities from exploiting these platforms.While immediate actions are necessary to address the current wave of online scams, long-term solutions are also crucial for building a more resilient digital ecosystem.
February 15, 2024
This entails investing in cybersecurity R&D, & international cooperation within the technology industry.Governments, regulatory bodies, and financial institutions should prioritize educational campaigns aimed at raising awareness about the various forms of online scams.
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