Every financial scam, no matter how sophisticated it appears, succeeds for just one reason — it triggers either greed or fear and with URGENCY and SECRECY.
After decades of observing
investor behaviour and consumer financial mistakes, one truth stands out
clearly:
People don’t lose money
because scammers are smart; they lose money because emotions overpower logic. Fraudsters
design situations that feel urgent, personal, threatening, pushing the brain
into ‘survival mode’.”
In today’s digital world, online
scams are no longer rare incidents — they are daily occurrences. Yet, the
patterns behind them remain remarkably predictable. Understanding these
patterns is the strongest defence you can build.
Greed:
When Expectations Defy Reality
Greed begins when we expect disproportionately
high rewards with little effort, time, or risk. Scammers design their
offers precisely around this weakness.
Common Greed-Driven Scams You Must Recognise
1. Stock Market, Forex & Cryptocurrency “Guaranteed Profit” Schemes
Promises such as 5–10% daily
returns or doubling money within weeks are financially impossible and
legally prohibited.
Key facts every investor should
remember:
- SEBI does not allow guaranteed returns in
the stock market.
- Legitimate stock investing requires a demat
account and SEBI-registered intermediaries.
- Forex trading is not permitted for individuals
in India under RBI rules.
- Cryptocurrencies remain unregulated and legally
uncertain.
A simple reality check works
every time:
If someone can generate
such phenomenal returns, why would they offer it to strangers instead of
earning quietly for themselves and their family?
2. Fake Celebrity or Government-Endorsed Investment Schemes
Scammers use manipulated videos
or advertisements featuring celebrities or senior government officials. Genuine
government-backed schemes offer benchmark, not extraordinary, returns
and are always announced through official channels and mainstream newspapers &
news channels.
3. “Money Credited” SMS or Link Scams
Banks do not credit free money,
nor do they ask customers to withdraw funds via links. Any such message is
fraudulent — without exception. Check the source of SMS whether it is a
personal number or the official bank service number.
4. Illegal Loan Apps
Many unregistered loan apps offer
quick, small loans. Once installed, they gain access to contacts, photos, and
personal data. Sometimes money is credited without consent, followed by
harassment, blackmail, and demands for exorbitant repayments.
Always borrow only from
RBI-registered banks or NBFCs, and never install unknown financial apps.
5. Online Shopping & Social Media Deals
Extremely cheap offers outside
established platforms usually result in either loss of money or substandard
products.
There is no shortcut to value.
6. “Easy Money” Online Job Offers
Data entry, rating tasks, or
handwriting jobs promising high income with minimal effort are classic traps.
There is no legitimate work that pays high without skill, effort, or
verification.
The
Role of Fear
If greed pulls people into scams, fear pushes them to act irrationally. The first rule to remember is simple: If you have not done anything wrong, there is nothing to fear.
Common Fear-Based Scams
1. Arrest or Legal Threat
Calls
Scammers impersonate police
officers, enforcement agencies, or regulators and demand money to “settle”
matters. No police, tax authority, RBI, or court will ever ask you to transfer
money into a private account and they will not instruct you not to tell the
matter to anyone and keep it secret.
Authorities can directly
freeze/attach a bank account with banks directly — they don’t need your
permission to do it.
2. Parcel / Courier Scams
You may receive a call claiming
that a parcel booked in your name or Aadhaar contains illegal items. We must
know that Aadhar number is not required to book any parcel. In reality:
- RBI or the Supreme Court does not issue direct
orders to individuals
- Arrest warrants follow a defined judicial hierarchy
A calm response — “Please proceed
legally; I will cooperate” — usually ends the call.
3. “Your Family Member Is Detained” Scam
A caller claims your family
member has been arrested and demands money for release.
Stay calm. Ask for the police station name, say you will come personally, and
independently verify by calling your family member, friends, or colleagues.
Panic is exactly what the scammer wants.
4. Income Tax / GST Threats
Fraudsters claim discrepancies in
your tax returns and demand immediate payment.
The correct response is simple: ask for an official written notice and
inform them that you will consult your Chartered Accountant. Genuine issues are
always communicated formally and can be rectified lawfully.
Quick Safety Checklist (Save
This)
Before acting on any financial
message, ask yourself:
✅ Is the return promised
unusually high or guaranteed?
✅
Is there pressure to act immediately or secretly?
✅
Are you being asked to transfer money to a personal account?
✅
Is the person avoiding meeting in person?
✅
Is fear being used to rush your decision?
If the answer is “Yes” to even
one — stop immediately.
Final Advisory Thought
In financial matters, logic
must always override emotion.
Greed blinds judgment, and
fear suspends reasoning — scammers rely on both.
A legitimate opportunity
allows time, transparency, verification, and consultation.
Anything that demands urgency, secrecy, or panic is not an opportunity — it
is a trap.
Stay informed. Stay calm. And when in doubt, seek professional advice.
