Zerodha's Nithin Kamath warns investors of 'pig-butchering' scams from imposters

Nithin Kamath wrote that this was just another one of the hundreds of international scams that have exploded over the last few years.

Fraudsters are creating fake websites and trading apps that look like offerings from Indian brokerages, to rob people off their money, warned Zerodha's Nithin Kamath.

In a Twitter post, the co-founder of one of the leading brokerages compared it to "pig-butchering" scams, where scammers imitates trusted entities to get people to part with their money.

Kamath's post stated: "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."

Large number of messages from bots, unrelated accounts: brokerage on #BoycottZerodha

He added, "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."

He wrote that this was just another one of the hundreds of international scams that have exploded over the last few years. Kamath restated the tips he had given earlier, saying that they would serve in this instance as well.

Last November, he had given a few tips on how to stay safe from pig-butchering scams.

As the name implies, these scams also involve "fattening" the victim before butchering. That is, gaining the trust of the people by using fake profiles, offering love and friendship, and then inducing them to send money for jobs and high-return investments.

In his earlier post, Kamath wrote, "These scams are global, and their scope is staggering."

He warned that everyone around us was a potential victim, whether they were educated or not.

To protect yourself from these imposters, Kamath shared eight tips:

• 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 details, or your financial information like bank details, investment details.
• Finally, if it sounds too good to be true, it probably is.