Nitin Kamath, the co-founder and CEO of Zerodha, an online brokerage firm, has raised an alert about a new scam targeting indian investors. He referred to it as a "pig butchering scam," emphasizing that scammers are creating phishing websites mimicking indian brokerage firms, leading to fraudulent activities against unsuspecting investors.
Kamath warned investors about the proliferation of these phishing websites, which are continuously being created to deceive individuals. The scam, reportedly operated from china and other Asian countries, is reminiscent of the Chinese loan app scam. Scammers are creating numerous fake websites and apps that closely resemble those of legitimate indian brokers, tricking investors into installing these fraudulent applications.
Subsequently, the scammers exploit the trust of investors to siphon money from them. The term "pig butchering scam" is aptly chosen by Kamath to describe this fraudulent scheme. Analogous to how pigs are fattened before being slaughtered for meat, scammers lure investors with promises of earnings and attractive returns.
As investors become increasingly greedy and stake more money, the scammers abruptly disappear with the entire sum, leaving investors realizing that they have fallen victim to fraud. To protect oneself from such scams, Kamath advises investors to exercise caution and avoid succumbing to greed. It is essential to steer clear of apps or websites promising unrealistic returns.
Additionally, individuals should be wary of clicking on suspicious links received through messages or emails and should refrain from downloading or installing apps from unauthorized sources. As fraudulent activities extend to the cryptocurrency space as well, investors need to remain vigilant to safeguard against potential scams.
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