Zerodha’s Nithin Kamath Cautions Against Cyber Frauds After Bengaluru Techie Losses Rs 91 Lakh

“The trend of these frauds is increasing. The past 9 months alone have had scams worth 11000 crores! I dread to think what it will be like once the fraudsters use AI,” Kamath wrote in a post on X

He pointed to a recent case involving a Bengaluru-based software engineer who fell victim to scammers, losing Rs 91 lakh to false promises of large stock market gains

Source : X

Zerodha CEO Nithin Kamath expressed concern over a rise in financial frauds following a recent incident in which a Bengaluru-based tech professional lost nearly Rs 91 lakh in a stock market scam. The billionaire emphasised this case while sharing a simple yet essential step that could help individuals avoid such scams.

Kamath, 45, highlighted the alarming rise in cyber frauds, with over Rs 1,100 crore lost to such scams in just the past nine months. He pointed to a recent case involving a Bengaluru-based software engineer who fell victim to scammers, losing Rs 91 lakh to false promises of large stock market gains.

“The trend of these frauds is increasing. The past 9 months alone have had scams worth 11000 crores! I dread to think what it will be like once the fraudsters use AI,” Kamath wrote in a post on X. 

The trend of these frauds are increasing. The past 9 months alone have had scams worth 11000 crores! I dread to think what it will be like once the fraudsters use AI. 😔

One thing you can do to protect yourself is change the settings on your WhatsApp and Telegram so strangers… pic.twitter.com/Wl6mz30c52

— Nithin Kamath (@Nithin0dha) November 29, 2024

The Zerodha founder highlighted the role of WhatsApp and Telegram groups in these scams, where fraudsters often invite unsuspecting individuals and lure them with promises of substantial returns. Kamath advised people to be cautious and avoid joining such groups unless invited by a trusted source.

“One thing you can do to protect yourself is change the settings on your WhatsApp and Telegram so strangers can't add you to groups. Here's screenshots of the settings screen that show how to do it,” he wrote, sharing detailed images of the process. WhatsApp users can modify their settings to ensure only contacts can add them to groups.

Many people in the comments section thanked Kamath for the helpful advice. “This month, we’ve identified over 30 fake trading apps impersonating brands like Paytm Money, HSBC AMC, FYERS, SMC, Nuvama, IIFL, Motilal Oswal, Interactive Brokers, and other global financial institutions. Despite early detection, many of these brands lack the urgency to acknowledge and act, allowing scammers to thrive. We must not only raise awareness but also take decisive action to counter these fraud apps directly,” wrote one of the X users.