Have you ever been scammed? Almost all of us must have received a mail from someone, not in the mailing list, wishing to share spoils that was received by way of inheritance. Click on the link that is shared, and you will be scammed. Scams come in various shades and colours. From job scams, e-commerce scams, phishing scams, fake friend call scams, to malware scams, Ponzi scams, investment scams, property scams and the list is endless. The RBI data, shows that reported frauds were to the tune of ₹60,414 crore in 2021-22 and that collectively, the bank frauds have resulted in losing at least ₹100 crore every day over the past 7 years. The Microsoft 2021 Global Tech Support Scam Research report, reveals that 69% of consumers experienced some online fraud in India in 2021.
So, what do scammers do? They are much ahead of you on tricks often involving manipulation, misrepresentation, or deception. In-person interactions, phone calls, emails, text messages, or online platforms are all means used to scam. Phishing, identity theft, fake websites, and other internet-based schemes to trick individuals into revealing personal information or sending money are the tools they use. They may offer fake investment opportunities, promising high returns, but in fact, have no intention of investing the money as promised. Sometimes, Victims are told they’ve won a prize or a lottery, but are required to pay fees or taxes to claim their winnings, which do not exist. Does romance know age? There are online romantic relationships built for all ages, with an intention of defrauding the victims financially, often by requesting money for various reasons. Advance fee frauds are where scammers ask victims to pay a fee upfront to access a promised service, such as loans, job opportunities, or grants, but the service is never delivered.
For all those not well versed with technology, there are tech support Scams, where fraudsters pose as technical support agents, claiming that the victim’s computer or software is infected with malware and charging them for unnecessary services or software. In charity scams, the scammers pose as charitable organizations, soliciting donations for fake causes or pocketing funds instead of using them for the stated purpose. Have we not heard of Ponzi schemes, where money from new investors is used to pay returns to earlier investors, creating the illusion of a profitable business? Eventually, the scheme collapses as it did for Bernard Madoff, a prominent financier and former chairman of NASDAQ.
That he was arrested in December 2008, for running the largest Ponzi scheme in history must have been of little solace to his victims. Over several decades, he attracted wealthy clients by promising consistent, high returns on their investments. However, he was actually using funds from new investors to pay returns to earlier investors, without any legitimate investment activity. His scam unravelled when the 2008 financial crisis led to a wave of withdrawal requests, he couldn’t meet. His fraudulent scheme ultimately defrauded investors of an estimated $65 billion. Many high-profile individuals and charitable organizations were affected, and the case had significant repercussions for the financial industry. Madoff was eventually sentenced to 150 years in prison in 2009, and he passed away in prison in 2021. Many of his victims too must have passed away without any justice being meted to them.
There are also rental scams where scammers pose as landlords or rental agents, advertising properties that do not exist or that they do not have the authority to rent or sell. Further there are job scams. Many looking out for a job will narrate them, where scammers offer fake job opportunities, requiring them to pay for job placement services, training, or materials. Unfortunately, nothing comes out of them.
So, if scammed, what do we do? Remember to report it to the appropriate authorities, to help recover a little of what is lost and prevent others from becoming victims. Prevention is better than cure is an oft repeated adage. If the deal is too good to believe, most probably it is a scam. Be informed about common scam tactics. Practicing online security measures can help avoid falling victim to scams. Did you know that the maximum punishment for an offence under section 420 of IPC is imprisonment for a term which may extend to seven years, with or without monetary fine? But then how does that help the victim?