Indian Investors Targeted by Phishing Websites and Fake Trading Apps, Warns Zerodha CEO Nithin Kamath

Following the Chinese loan apps scandal, concerns have surfaced regarding a new wave of scams targeting Indian investors. Nithin Kamath, CEO of Zerodha, an Indian brokerage firm, raised a red flag about phishing websites designed to deceive users into downloading fake trading apps.

“After the Chinese loan apps scam, the latest scam from actors in China and other Asian countries is phishing websites. Fraudsters are creating hundreds of websites and trading apps that look similar to the websites of Indian brokers,” Kamath said in a post on social media platform X.

“Unwitting users who click on the app download links, etc., will be prompted to download the fake app. The goal is to get people to transfer money by taking advantage of their familiarity with these apps,” Kamath added.

In September 2023, Mint reported that due to the rising fraud cases owing to illegal loan apps, the central government is planning to crack down on such apps available on Google Play Store and Apple app store. The government was also planning to create norms for only allowing permitted loan apps on the two stores, Union Minister of State for Electronics and IT Rajeev Chandrasekhar had said.

The Reserve Bank of India reported around 13,000 bank fraud cases across India in fiscal year 2023. Loan frauds have become increasingly prevalent, with scammers often impersonating reputable lenders. These fraudulent operators promise a hassle-free experience and quick funds without conducting background checks or scrutinising credit history.

Kamath emphasized that individuals should remain vigilant and cautious while downloading any financial apps or visiting newly discovered trading websites, to avoid falling victim to these fraudulent tactics.

The government’s crackdown on fraudulent financial apps and the cooperation of financial institutions, along with the vigilance of individual users, will play a key role in curbing these scams and protecting Indian investors.