Nikhil Kamath said that the government is trying to fight such scams. (File)
Zerodha CEO Nikhil Kamath has shared details about a new scam that is responsible for losses amounting to several thousands of crore rupees. Speaking on his podcast and then in a tweet, the entrepreneur referred to the scam known as the “pig butchering scam.”
Explaining the concept behind the name of the scam, Mr Kamath shared that the fraudsters work by earning the trust of their victims and “butchering” them financially. He said that the scamsters “use the pretence of love and friendship to gain the trust of users and then induce them to send money for jobs and high-return investments and steal the money,” comparing the victims of the fraud to the proverbial pig that is fattened up before it is taken for slaughter.
Offering insight into a common modus operandi of such scamsters, Mr Kamath said that they offer fraudulent job offers to victims, who then relocate abroad for these purported opportunities. Once they do so, the individuals may become captive and coerced into scamming others by building trust and continuing the cycle. This includes the creation of deceptive profiles of individuals to deceive the opposite gender, Mr Kamath warned.
Sharing details in a tweet, he said, “What makes these scams even 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.”
Speaking about the need for increased awareness, Mr Kamath said, “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. Quick money and a job abroad is a honeypot that gets many Indians to act instinctively.”
As per Mr Kamath, the scam has led to losses amounting to several thousands of crore rupees and spans across areas of operation. He also added that “pig butchering scam” is an umbrella term for a range of scams that include but are not limited to fraudulent crypto investments, fake investment schemes and bogus job offers. “These scams are global, and their scope is staggering.”
Check out the tweet here:
Nikhil Kamath also added that the government is trying to fight such scams through its cybercrime division.