Stay Alert from Impersonators: Loan and Cashback Scams are Employed to Defraud Traders.

Stay Alert from Impersonators

Stay Alert from Impersonators: Loan and Cashback Scams are Employed to Defraud Traders.

Bengaluru:  The vibrant commercial landscape of Bengaluru has become a fertile hunting ground for a novel type of fraudsters – those pretending to be workers of UPI payment companies such as Paytm, who deceive naïve entrepreneurs and street sellers by offering enticing loans and cashback rewards. These astute felons are not only depleting victims’ finances but also undermining confidence in the expanding digital payment system.

Suresh M, the proprietor of Manjunath Condiments in Hosapalya, was recently deceived by a persuasive scammer who guaranteed a substantial ₹150 payback for each ₹2,500 transaction made on his Paytm application. Enticed by the seemingly incredible offer, Suresh made three separate first payments of ₹1, in the hopes of activating the reward system. Unbeknownst to him, the conman was discreetly monitoring his PIN inputs during each transaction.

“The culprit deceived me by pretending to activate the cashback offer and then gave the phone back,” Suresh informed the media. “He stated that it would be activated within a few hours and departed.” Eventually, I observed the absence of an internet connection on my mobile device. I brought the phone to a mobile service center that was conveniently located nearby.

The shopkeeper informed me that the mobile data had been deactivated. Shortly after enabling mobile data, I received a notification stating that a sum of ₹95,000 had been deducted from my account. It was at that moment that I became aware that the wrongdoer had tricked me into paying one rupee three times in order to secretly obtain my PIN and steal money.

Suresh’s experience is not a singular occurrence. Recently, a street vendor named Shivamma from Bangalore fell victim to a scam where she was deceived into requesting an immediate loan of ₹80,000 by an impostor posing as a representative from Paytm.

The culprit, masquerading as a kind loan facilitator, cunningly seized Shivamma’s phone and used it to authorize the loan, thereafter transferring the money directly to his personal account.

These occurrences emphasize the growing complexity of fraudulent activities involving digital payments and the immediate necessity for merchants and vendors to exercise prudence. The authorities are currently searching for the individuals responsible since a case has been filed under the Information Technology Act and IPC section 420, which pertains to fraudulent activities and deceiving others to get property.

Notable Red Flags

Here are a few warning signs to be cautious about in order to prevent being a target of such fraudulent schemes:

  • Under no circumstances should you disclose your PIN or OTP to anyone, even if they purport to be from Paytm or any other legitimate entity.
  • Exercise caution when receiving unsolicited offers, particularly ones that guarantee substantial cashback or immediate loans.
  • Exercise caution and refrain from allowing anyone to handle your phone, particularly in the context of financial transactions.
  • Prior to authorizing every transaction, it is imperative to consistently verify the sender’s information.
  • Promptly notify the authorities of any dubious behavior.

To safeguard themselves from these deceitful fraudsters and guarantee the safe utilization of digital payment platforms, traders and vendors should be watchful and well-informed.

Additional Tips

  • Digital payment wallets like Paytm, PhonePe, Google Pay, etc., will never request that you disclose sensitive information over the phone or download a third-party application.
  • To ascertain the legitimacy of a Paytm or any other Digital payment wallet representative, one may at any time contact the organization’s designated customer service hotline.
  • Keep abreast of the most recent fraudulent schemes and inform others about them.

About The Author:

Yogesh Naager is a content marketer who specializes in the cybersecurity and B2B space.  Besides writing for the News4Hackers blog, he’s also written for brands including CollegeDunia, Utsav Fashion, and NASSCOM.  Naager entered the field of content in an unusual way.  He began his career as an insurance sales executive, where he developed an interest in simplifying difficult concepts.  He also combines this interest with a love of narrative, which makes him a good writer in the cybersecurity field.  In the bottom line, he frequently writes for Craw Security.


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