Top 5 personal finance scams in India and how to stay safe from them

In the last few months, have you received a suspicious call from a stranger claiming that you have won a cash prize? Or has someone tried reaching out to you saying that a relative is in trouble and urgently needs money? If you answered yes to any of these questions, know that you are not alone. India has reported a rise in scam calls in recent months and these calls seem to be increasing at a rapid rate.

But not just calls, there are various other platforms that scammers try to take advantage of, to rob people of their hard-earned money. Read on to know about the top 5 personal finance scams that are surfacing in India and how you can stay safe from them.

Fake job offer scams

This is one of the most commonly reported scams. Over the last year, there have been many cases where people were approached for seemingly lucrative job offers via platforms like WhatsApp and Telegram. Some of these cases involved the victim making payments to certain accounts, while being made to believe that it is a part of the job and there will be a handsome return later.

For instance, a PTI report in May this year revealed that a woman from Navi Mumbai found herself trapped in an online fraud and lost Rs 54 lakh. The victim wanted to earn some extra money by working from home and was reportedly offered freelance work by the scammers. She was also told that she would earn money after completing five tasks. And to receive these tasks, the woman claimed that she paid Rs 54.30 lakh in various accounts. When the woman asked for payment after completing the tasks assigned to her, the scammers stopped replying.

Sweetheart scams

Meeting the love of your life through an online platform seems too good to be true at times. And sometimes, this really is the case. Various cases have surfaced in the past where the victims were duped of their hard-earned money by their online lovers.

Just last month, a man in Delhi was scammed of Rs 1.2 lakh when he planned to meet a woman he was talking to on Tinder. The two met at a cafe in Delhi to celebrate the woman’s birthday and ordered some snacks, cakes, and wine. The woman however, abruptly left in the middle of the date citing a family emergency. And the victim incurred a bill of Rs 1,21,917.70 for food that should have only cost a few thousand bucks.

When he questioned the high bill, he was threatened and forced to pay. After investigating, the police found that the cafe split the high bills in a set way: 15% to the girl, 45% to the table and cafe managers, and 40% to the owners.

Fake screenshots scams

Another type of scam that is widely happening in the country is where you are shown a screenshot that gives the impression that your account has been credited with some money, when it actually has not.

For instance, in March this year, a Delhi Uber driver was making headlines for overcharging a customer for a ride to the airport. A Moneycontrol report mentioned how a man described his experience in a Reddit thread. As per the report, the man said that he had booked a ride to the airport and the initial fare was Rs 340. However, when the ride was completed, the Uber driver showed him a screenshot which depicted that the fare was Rs 648.

The driver had claimed that the fare increased due to more waiting time. However, that wasn’t the case and the driver had created a fake screenshot to demand extra money. After this post went viral, several other Reddit users reported similar incidents.

YouTube like and earn scam

This one is similar to the completing tasks scam. In this scam, fraudsters tend to tell the victim that they will have to engage with a YouTube channel to earn money. They then ask the person to make certain payments, promising a greater reward later on. Once the victim transfers the money, the fraudsters tend to disappear into thin air.

In February this year, there were reports of a man losing Rs 16 lakh due to such a scam.

Online shopping scam

If you have ever shopped online, be sure to read this one. Many scamsters come up with fake advertisements on reputed platforms like Instagram to lure people into buying items online. In such scams, once the order has been placed and payment has been made, the victim doesn’t receive the products. In addition to this, scammers can also pose as bank employees and gain access to sensitive information of the victim’s account.

For instance, a report by PTI last year revealed that a 70-year-old woman was buying six towels online for Rs 1,160. While making the payment, Rs 19,005 was taken from her account instead of Rs 1,160. She tried to contact the bank helpline but couldn't reach them.

Soon after, she got a call from an unknown number. The caller claimed to be from the bank and offered to help with her payment problem. He asked her to download an app for the refund.

The woman followed his instructions but ended up losing Rs 1 lakh from her account. When she saw the unauthorised transactions, she went to the police station. Meanwhile, another Rs 8.3 lakh was withdrawn from her account.

How to stay safe from such scams

Even though more and more people are being targeted by scammers, there are some ways that you can ensure that you stay safe. Keep these few points in mind in order to protect yourself against personal financial scams.

1. Don’t share your personal information with strangers online or on the phone.
   
2. Don’t make any payments just because a stranger told you to. Verify the situation and the person’s credentials.
   
3. Don’t click on suspicious links that are sent to you on emails or text messages.
   
4. Avoid shopping for doubtful websites or accepting job offers from sites that appear dubious.
   
5. Before taking up any job offer, perform a thorough search of the company or the person who is claiming to recruit you.
   
6. Read up a bit about popular scams going on right now. At times, a simple Google Search can help you save up loads of money.