Fake Zerodha Scam Is Costing People Lakhs: Brokerage Warns | Video

Zerodha posted a cautionary video on their YouTube channel, raising awareness about a scam using their company's name. The video dwelled in detail on the entire framework of scammers, while issuing a note of caution for everyone who uses digital platforms.

Modus Operandi Of Scammers

The scammers will add the person to a WhatsApp group with Zerodha founders Nikhil Kamath, Nithin Kamath and COO Venu Madhav, among others. Just as you are about to digest the addition to the group, a video message pops up, where a young woman confidently announces she is part of Zerodha Securities. It looks official with the Zerodha logo in the background, crisp and clear. She promises an investment plan to the group exclusively with plum returns.

To invest you need to create an institutional account with Zerodha, and there is paperwork, all with Zerodha company seal. The returns are clearly outlined in the document.

To begin the process they ask for a direct deposit into a specific bank account as a part of the set-up. They even show a circular from SEBI to prove their legitimacy. To concretise the transaction they will also share a fake Zerodha app that will look legit. Once you invest you will see your balance increasing, the returns look great.
They encourage you to add more funds, promising an even better returns.  

When you deicide to withdraw money, a message pops up asking for a service fee for withdrawal process. They keep delaying by asking for more fees as one more step, until the person realizes they have been scammed.

This is a scam prevalent across financial institutions and banks, not just Zaerodha.

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