Zerodha’s Nithin Kamath recently shed light on the alarming prevalence of “pig butchering” scams in India and urged the public to be more vigilant.
What Happened: In a post on X, Kamath said these scams, which involve con artists gaining the trust of their victims before defrauding them, are a substantial issue in India, with losses reaching into the tens of thousands of crores.
The scammers often employ the guise of love or friendship to swindle victims out of their money, promising lucrative job offers or high-return investment opportunities. They may also use fake profiles to bolster their credibility.
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Interestingly, Kamath noted that some of these fraudsters may themselves be victims of other scams. For instance, they could be lured overseas with the promise of a job, only to be held captive and forced to scam others.
“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 said.
Why It Matters: The scale and complexity of these scams suggest a vast, interconnected network of deceit. Kamath stressed the importance of spreading awareness about these scams, as anyone can fall victim to them, irrespective of their level of education.
He pointed out that the allure of quick money and overseas jobs can lure many Indians into acting impulsively, making them easy targets for these fraudsters.
On a hopeful note, Kamath mentioned that the government’s cybercrime division is actively battling this issue and improving India’s response by stepping up hiring in an effort to bolster its ranks.
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