Zerodha co-founder Nithin Kamath has highlighted the growing number of digital fraud arrests in India. According to Kamath, people across the country have lost more than ₹2,000 crore this year.
In a post on social media platform X, Nithin Kamath shared details on the digital arrest scam.
“Indians have lost over ₹2000 crores to digital arrest frauds this year. These scams work by creating fear in people. They take advantage of people’s tendency to make mistakes when they are afraid,” Kamath wrote on X.
How does a digital arrest scam work?
The Zerodha co-founder further described how people are tricked into the scam.
His post read, “You get a call from a person claiming to be a police officer. They tell you that a courier parcel in your name has been seized because it contains illegal items like drugs or other contraband. Then you get a WhatsApp video call with a scamster wearing a police uniform. They threaten to arrest you, take you to court, and then ask you to transfer money to their account to ‘close the case’.”
Kamath further warned, “Those of us who are educated may think that no one will fall for such obvious scams, but crores of educated Indians have fallen victim to these frauds.”
What should you do?
Nithin Kamath also shared tips on how to protect yourself from digital arrests. He advised people to seek out experts and not act in a hurry.
“I’ve shared this earlier as well: Never react in a hurry when you get such calls. At the very least, speak to someone knowledgeable, to your lawyer, or just walk into the nearest police station. The fraud works because we instinctively become afraid and will do whatever it takes to avoid trouble. Don’t react in a hurry. Also, block or don’t receive calls and messages from unknown numbers,” he wrote.
