Top 5 Financial Scams in India

Top 5 Financial Scams in India

Ponzi Schemes

Ponzi schemes deceive investors by using new investors' funds to pay returns rather than generating profits through legitimate investments. The scheme collapses when new investors can no longer be attracted.

Multi-Level Marketing (MLM) Scams

MLMs, also known as pyramid schemes, entice people to join by promising high returns. However, these returns mainly come from new recruits' payments rather than actual product sales or services.

Bank Loan Frauds

Bank loan fraud involve individuals or companies applying for loans using false information or fraudulent documents. They may also fail to repay the loan or divert the funds to personal accounts.

Phishing Scams

Phishing scams employ fraudulent tactics like deceptive emails, SMS messages, or phone calls to trick individuals into divulging sensitive financial information, such as passwords, bank account details, or credit card numbers.

Stock Market Scams

Stock market scams manipulate the market through false rumours or insider information, artificially inflating stock prices. Scammers then sell the stocks profitably, leaving unsuspecting investors at a loss.