How to Stay Safe from Money Doubling Scams

01 March 2024
4 min read
How to Stay Safe from Money Doubling Scams
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In India, there has been a notable surge in cases of money doubling scams, where fraudsters entice victims with promises of doubling their investments. Some time back, in Kashmir, a company called Creative Curative Surveys Pvt Ltd. lured several investors with the same pledge, only to vanish, leaving them in distress. Similar occurrences are widespread across various other online platforms, too.

So, to learn how you can stay safe from such scams, go through this blog.

What are the Different Cases in which Money Doubling Scam Works

Here are 2 cases explaining how the double money investment scam works:

  • Case 1

You receive a message on SMS or WhatsApp from Groww claiming you have won a special offer because of your frequent credit card use or high bank balance. They say you can double your money quickly. Following this, they send you a link, asking you to deposit your money, but instead of doubling it, they just take your money.

  • Case 2

A scammer pretends to be from a small financial company and contacts you. They promise huge returns on a small investment in a short time. They convince you to invest a little money, and then they return double the amount quickly to gain your trust. Once you trust them, they steal a large sum of money from you.

How to Save Yourself From Money Doubling Scams

Here are some points that you must keep in mind to save yourself from money doubling scams:

1) Be Attentive

Stay alert when investing in the stock market through Groww. Be cautious of schemes that claim to give you extremely high returns. On social media, you might come across ads saying, ‘Double your investment amount in just 2 months’. Do not be tempted by these promises of quick wealth.

2) Control Your Biases

To protect yourself from money doubling scams, it is crucial to control your behavior and biases. Often, our actions and tendencies make us susceptible to financial fraud.

Common biases include the desire for adventure, the need to always be right, and the temptation to get rich quickly. Additionally, the fear of missing out or the inclination to reciprocate freebies received from others can influence our decisions.

3) Be Careful with Tech-based Actions

Be cautious when encountering investment offers from unfamiliar sources while using the Groww app. Numerous financial frauds in India occur through unsolicited phone calls or emails, with scammers using technology to deceive unsuspecting individuals.

If you receive a call or email, watch out for these warning signs:

  • Promising guaranteed double returns from Groww
  • Pressuring you to make a quick decision for a limited-time offer
  • Claiming that everyone else is investing and getting twice their investment amount

4) Do Not Enter PIN/OTP unless Verified

Be extra cautious if you receive requests asking you to make a payment or provide your UPI PIN to supposedly receive funds, as this could be a scammer tactic to trick you into sending them money instead.

5) Use Verified Contact Details

Avoid searching for customer support numbers on external platforms like Google, Twitter, or Facebook. The only official way to reach Groww customer support is through the app or its online website. 

How Should You Respond When Contacted by a Fraudster?

If you are contacted by a fraudster, you need to take the following actions immediately to protect yourself:

  • Report the incident to your nearest cybercrime centre and file an FIR with the police. Provide relevant details such as phone numbers, transaction information, card numbers, and bank account details. You can do this by visiting the official cybercrime website or contacting them through their phone number to file a cyber complaint online.

  • If you receive a suspicious contact via the Groww App, log in to your Groww account immediately and access the ‘Help’ section. From there, report the fraudulent incident by selecting ‘I noticed suspicious activity on my account’ under the ‘Groww Account’ section. Another option is to visit https://groww.in/help  and log in to report the issue. 

Summing Up

It is crucial to take proactive measures to safeguard yourself from money doubling scams, especially when using platforms like Groww.

By staying alert, controlling your immediate actions, and being cautious of red flags, you can protect your investments from such fraudulent schemes. Remember to report any suspicious activity through official channels provided by Groww or cybercrime centres to help combat financial fraud and ensure the security of your finances.

You may also want to know

1.

Types of Banking Frauds - How to Prevent Them

2.

How to Secure Your Account from UPI Frauds

3.

How to Protect Your Demat Account from Fraud

4.

What are The Ways to Avoid Cyber Threats and be Safe

5.

How to Avoid Personal Loan Scams and Frauds
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