Zerodha co-founder and CEO Nithin Kamath has put the spotlight on the scale of "pig butchering scams" in India which he claimed 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." he wrote on X. "It is essential to talk about this frequently with as many people as possible, given the scale of the problem. Everyone around us is a potential victim, regardless of whether they are educated or not."
Explaining what a pig butchering scam is, Nithin Kamath said it involves "fattening the victim before butchering" which involves scammers using fake profiles to gain the trust of users, often using the pretense of love and friendship. "They then induce them to send money for jobs and high-return investments and steal the money. These scams are global, and their scope is staggering," he added.
The billionaire further shared that what makes pig butchering scams more cruel is that the person scamming could also be a victim of another type of scam. "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," Nithin Kamath said.
The Zerodha boss then listed pointers to protect oneself from pig butchering scams:
1.) Never reply to unknown messages on WhatsApp, social media platforms, and dating apps.
2.) If someone asks you to download some new apps or open links, that's a red flag.
3.) These scams rely on exploiting your emotions, like hopes, fears, dreams, and greed. Never react in a hurry.
4.) Don't panic. Most people fall for these scams because they react in a hurry.
5.) 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.
6.) Never ever share your personally identifiable information like your Aadhaar, passport, or financial information like bank details, investment details etc.
7.) If it sounds too good to be true, it probably is.
Kamath also pointed out that quick money and a job abroad are a honeypot that gets many Indians to act instinctively. He also urged people to keep track of how the government and the cybercrime division has been fighting such crimes.
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