Fintech Scams in India (2023–2025): The Dark Side of a Digital Revolution

 



Fintech Scams in India (2023–2025): The Dark Side of a Digital Revolution


India’s Fin-Tech sector has experienced a meteoric rise over the past decade. With the widespread adoption of UPI, mobile wallets, instant loans, and crypto platforms, millions have gained access to digital finance. However, this fintech boom has also made India a hotspot for cybercriminals and financial fraudsters. Between 2023 and 2025, fintech scams have grown in volume, sophistication and impact leaving behind a trail of financial and emotional devastation.


Understanding Fintech Scams:

Fintech scams refer to deceptive activities carried out through digital financial platforms such as payment apps, online lending platforms, stock trading apps, and cryptocurrencies. Fraudsters exploit loopholes in technology, regulation, and human behavior often leveraging AI tools, social engineering, or deepfakes to manipulate victims.


Key Scams in 2023:


1. Chinese Loan App Scam

In early 2023, several illegal loan apps with links to Chinese entities were busted for charging exorbitant interest rates and blackmailing borrowers. Victims were coerced using morphed images and harassed through contacts. Andhra Pradesh and Telangana reported multiple suicides linked to these scams.


2. BharatPe Fraud Case

An internal audit revealed a ₹72 crore scam involving fake invoices and ghost vendors orchestrated by a senior executive at BharatPe. This exposed governance lapses even within prominent fintech unicorns.


3. Mahadev Betting App Scam

The ED uncovered a ₹40,000 crore illegal betting ring run through digital wallets and shell apps. The Mahadev Book scam highlighted the misuse of fintech platforms for money laundering and unregulated gambling.


Scam Evolution in 2024:


1. Digital Arrest & Impersonation Frauds


Criminals began impersonating CBI, ED and RBI officials on video calls, threatening legal action and coercing victims to transfer lakhs. In Pune, a woman lost ₹97 lakh in a single such case. The rise of AI-generated voice and video deepfakes made these scams harder to detect.


2. Hibox Investment Scam

A fake stock trading app called Hibox lured investors with promises of 5% daily returns. Over 40,000 people lost nearly ₹500 crore before the platform vanished. Many influencers unknowingly promoted it.


3. Explosive Growth of Investment Frauds

The Indian Cybercrime Coordination Centre (I4C) reported that over ₹1,750 crore was lost to financial scams in just the first four months of 2024. WhatsApp and Telegram groups were widely used to promote fake stock tips and cryptocurrency opportunities.


2025: Sophisticated AI, Deepfake & Crypto Frauds


1. WazirX Crypto Hack (July 2024)

One of India’s largest cryptocurrency exchanges, WazirX was hacked by the Lazarus Group, leading to a loss of ₹2,000 crore. The hack exposed vulnerabilities in multi-signature wallets and crypto security protocols.


2. Deepfake Investment Scams

Scammers began using deepfake videos of public figures like Finance Minister Nirmala Sitharaman and Google CEO Sundar Pichai to promote fake investment schemes. These videos were circulated on YouTube and social media, prompting SEBI to issue warnings.


3. SIM Closure & UPI Scams

Fraudsters impersonated TRAI officials, tricking users into closing their SIMs and gaining access to OTPs for financial theft. In Delhi, a jeweller defrauded a woman of ₹50 lakh by pretending to be an FBI agent in a “digital arrest” case.


Real-World Cases (2023–2025)

• Hyderabad Doctor Duped of ₹20 Lakh: A cryptocurrency investment scheme on WhatsApp led to a significant loss.

• Pensioner Loses ₹13 Crore: A 75-year-old was manipulated over months into investing life savings through fraudulent online trading platforms.

• Cybercrime via USDT in Surat: ₹crores were laundered through USDT and traced to cross-border networks in China and Pakistan.

• Employee at Rashtrapati Bhavan Involved in UPI Theft: A staffer siphoned off ₹20 lakh from a colleague using QR code frauds.



Government & Regulatory Response:

• RBI: Issued repeated advisories on fake loan apps and UPI frauds.

• SEBI: Introduced “verified UPI” measures to protect retail investors from fake brokers.

• Ministry of Electronics & IT: Collaborated with Google to remove over 1000 fake apps.

• Indian Cybercrime Portal (1930): Strengthened mechanisms for quick complaint redressal and fund recovery.


How to Stay Safe:

• Never share OTPs, PINs, or passwords with anyone.

• Verify the authenticity of financial apps before use.

• Do not scan QR codes sent by strangers or accept money links.

• Be cautious of investment offers that guarantee high returns.

• Use official portals and report fraud immediately at cybercrime.gov.in or call 1930.
at
Labels:

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)