Financial Scams In India


In the case of consumer fraud, an individual is harmed financially or emotionally. Deceptive, unfair, misleading, or fraudulent commercial activities are all examples of fraud. However, fraudsters often target the elderly and college students, although all customers are in danger of being defrauded.


Every day, scammers develop new methods to swindle you out of your money. According to the CFPB, “You can protect yourself by learning what to watch out for.”


Forex scams are becoming more common in India over time. So, what are the most typical scams in India, and how can you avoid them? Take a closer look.

Financial Scams In India

You may already know that Identity theft is one of the most common scams in India. Your personal information may be used by identity theft gangs in order to steal from your bank account by draining your cash, opening a credit card in your name and using it to make purchases, taking out loans. Moreover, it’s possible to utilize your health insurance to pay medical costs.


Recovering your identity and fixing whatever harm you’ve done may be done with the aid of this website.


Thousands of mortgage fraud cases are handled by the SEBI each year. According to the SEBI’s Financial Institution Fraud Unit, today’s mortgage frauds are typically directed at homeowners who are in financial trouble. There are a variety of frauds, such as foreclosure rescue programs, loan modification schemes, and equity skimming. In addition to that, according to SEBI, the number of Forex scams increases in India as many people start Forex trading and the number of Forex scammers increases. SEBI advises investors to start trading with SEBI registered forex brokers in order to prevent malpractice and avoid being a victim of Forex scams. As we already mentioned above, It is possible for a criminal to take or locate your credit or debit card and use it to make purchases, withdraw cash, or utilize it in a fraudulent way.


Robocalls claiming to “promise to lower your credit card interest rate” are a new twist on credit card fraud, according to the FTC (for a fee). In most cases, these kinds of offers are bogus and ineffective in convincing credit card providers to cut your interest rate. They also ask for personal information, which they subsequently exploit to perpetrate identity theft, in addition to charging a price for nothing.


One of the most common forms of the prize and lottery fraud is the use of sweepstakes, drawing prizes, and even overseas lotteries. A phone call or letter may be the first step in this sort of scam, which commonly targets the elderly. More than 100,000 complaints regarding the prize and lottery fraud are filed with the FTC each year. Officials believe the issue is even more widespread than previously thought since many victims don’t come forward to report being conned.


It is possible for fraudsters to pretend to be debt collectors in order to demand payment for fictitious debts. These debt collectors are not genuine. Debt collectors have the authority to pursue you if you owe money.


Scammers have taken advantage of the coronavirus outbreak and the subsequent rapidly approved government regulations to prey on people’s fear and financial necessity.

The Biggest Financial Scams In India

While coronavirus is spreading across India, the government is inviting citizens to give to different initiatives in an effort to battle the epidemic as well as demonstrate support for those in need. Celebrities, businesses, and other members of the public have banded together to make a difference.


Now, the virus that has ravaged people’s lives and the economy has taken a toll on everyone’s quality of life. However, in the past, a small number of individuals have done harm to the economy of the nation via corruption and other unethical acts.


People used to refer to him as the “King of good times,” but things aren’t looking so good for him these days. When Vijay Mallya was arrested and accused of fraud and money laundering in India, he fled to the United Kingdom, where he sought sanctuary in 2017. Kingfisher Airlines CEO Vijay Mallya has urged Finance Minister Nitin Sitharaman to accept his “promise to return 100%” of the sum he borrowed from the banks on Tuesday, as the Indian government is still attempting to extradite him from Britain.


When the UPA administration was in office in 2012, the coal allocation fraud, sometimes known as ‘Coalgate,’ emerged as a political scandal. Several high-ranking officials and politicians were complicit in this swindle, which shocked the country to its core. A total loss of Rs 1.86 lakh crore was revealed in the final report after an original loss estimate exceeding Rs 10 lakh crore.


It was stated in 2008 that the government undercharged mobile phone firms for 2G spectrum allocation permits and the former Telecom Minister A. Raja was at the center of this scandal. By the CAG’s estimate, there was a $1.76 trillion discrepancy between what had been collected and what was authorized. An estimated (Rs. 1,76,000 billion) After the Supreme Court pronounced the spectrum “unconstitutional and arbitrary” in 2012, over 120 licenses were canceled.


2010’s India-hosted Commonwealth Events drew more attention for its problems and corruption than the games themselves. Criminal conspiracy, cheating, and forgery were all allegations leveled against Suresh Kalmadi, who was the chairman of the Common Wealth Games 2010. Indian athletes were reportedly compelled to live in appalling circumstances instead of the official accommodations provided to them.