New Scam Which Can Drain Your Bank Accounts, Warns Zerodha's Nithin Kamath

With the rise in digital scams, Zerodha CEO Nithin Kamath has raised a warning over a new scam targeting smartphone users. Kamath recently shared an important video highlighting one such scam and stressing the urgency for heightened awareness and caution in the face of growing fraudulent activities.

Decoding the New Phone Scam

Kamath wrote on X, sharing a video produced by Zerodha explaining how the scammers operate. He stated, “A stranger approaches you and asks to use your phone to make an emergency call. Most well-meaning people would probably hand over their phone. But this is a new scam. From intercepting your OTPs to draining your bank accounts, scammers can cause serious damage without you even realizing it.”

The video shared by Mr. Kamath shows how scammers while pretending to use your phone, can download new apps or open existing ones to access personal information. It also explains how they can change your phone’s settings to forward calls and messages, including important bank alerts, to their own number. This enables them to intercept OTPs, gain access to your bank account, make unauthorized transactions, and potentially alter your passwords. Scammers can still access accounts and make unauthorized transactions even after the phone is returned.

Tips to Stay Protected

To protect yourself from these scams, the video advises against handing your phone to strangers. If someone asks to use your phone, it’s better to offer to dial the number for them and keep the phone on speaker. This way, you maintain control over your device. Also, it’s important to regularly check your phone’s settings and ensure that call and message forwarding are disabled to prevent unauthorized access.

He also stated in the video that if you suspect a scam, you should act quickly by reporting the incident to the national cybercrime helpline in 1930.

With more than 6,20,000 views, the video has attracted widespread attention online, sparking concerns among many users who have shared their own experiences with similar scams. Also, one of the users recommended translating the video into multiple Indian languages to ensure it reaches a broader audience, as scammers often communicate in local languages. While another user said, “There are no obvious signs of tampering, which is what makes it so dangerous. You won’t see anything unusual happening.”