Zerodha Co-Founder and CEO Nithin Kamath on Monday (November 13) raised an alarm against increasing online frauds, explaining how a large number of people are falling prey to ‘pig butchering’ scams. In an explanatory post on X, the co-founder of the online brokerage firm said the scams run into tens of thousands of crores.
Live TV
Kamath shed light on the prevalence of pig butchering scams, alerting investors to be cautious and take precautions against a number of misleading social media posts and WhatsApp messages, such as bogus employment offers, high-return investment schemes and cryptocurrency investments.
“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," tweeted Nithin Kamath.
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.
As the name implies, a pig butchering scam involves fattening the… pic.twitter.com/x3ezkZrmHR— Nithin Kamath (@Nithin0dha) November 13, 2023
Explaining the nature of such online frauds, Kamath warned that these scams are global and the person scamming could also be a victim.
What is the pig butchering scam?
The ‘pig butchering’ scam operates as a cyber scheme where scammers pose as friends or romantic partners, deceiving victims into providing funds for fictitious investments or job opportunities, only to vanish with the money. Nithin Kamath described the scam, stating, “As the name implies, a pig butchering scam involves fattening the victim before butchering.”
How does it work?
Describing the technique in detail, Kamath explained that the fraudsters build confidence by using fictitious accounts, often feigning love and friendship. The scammers, who have a global reach, prey on a vulnerable target’s emotions. Scammers gain the trust of users by using fake profiles and then they steal the money after offering lucrative job or investment options.
Citing the example of a victim, Kamath said an Indian was lured by an international job offer. The person was then moved to Myanmar and forced to commit pig butchering scams on Indians.
ALSO READ: That simple ‘hi’ text from a stranger could be the start of a scam that ends up costing you millions
How to keep off pig butchering
In an effort to shield individuals from falling victim to pig butchering scams, Kamath offered several crucial tips:
1. Avoid responding to messages or communications from unknown sources via WhatsApp, social media, and dating apps.
2. Don’t download apps from random websites or unknown sources.
3. Keep an eye out for emotional exploitation; scammers frequently rely on hopes, worries, dreams, and greed.
4. Refrain from impulsive reactions; panic is a common precursor to falling victim to scams.
5. Seek assistance from local authorities or legal professionals when in doubt.
6. Treat promises of work or large rewards, along with demands for money, as red flags.
7. Safeguard personal information such as Aadhaar, passport details and financial information.
8. Remain sceptical — if an offer appears to be too good to be true, it almost certainly is.
