Yet another con was successfully executed by fraudsters in the name of quick and bumper returns through investment in the jewellery business. This is the story of the Torres, a scam that rocked Mumbai this week and was run through a firm called Platinum Hern Pvt Ltd. Torres offered 6% to 11% interest weekly, which is an annual return of 312% to 572%. Investors not only did not question this, but they also lapped up the offer of 20% of the investment by a new investor introduced by them as an upline commission. This is nothing but a classic multi-level marketing scam (MLM) and a Ponzi. The key conspirators have vanished into thin air, leaving a few low-level employees to face prosecution and the heat of several lakh angry 'investors' looking at a loss of over Rs1,000 crore.
In all MLMs, Ponzis and money circulation scheme scams, early investors are offered extraordinary commissions to lure or 'recruit' new 'investors'. Torres offered a 20% commission. This is more normal to Ponzi scams; it is the strategy to their growth and expansion. The bumper returns are actually paid out to early investors to convince them that the scheme is genuine. This is often marketed as a 'be their own boss' or 'remote working’ opportunity. It is now turning into a fertile ground for scammers to exploit unsuspecting victims. These scams lure people with promises of high-paying, easy work that can be done even from the comfort of their homes. In reality, these schemes often lead to financial loss, identity theft, or other forms of exploitation.
Let us understand different types of job scams related to remote work or be your own boss.
1. Ponzi: MLM or money circulation scams
In these schemes, fraudsters lure job seekers with promises of 'be your own boss' and 'unlimited earnings'. The reality? You are paying to play, often with no real return on 'investment'.
The money keeps coming till new recruits join. Once there are no new recruits, the money taps run dry, leaving thousands of victims crying for the return of their hard-earned investments.
2. Fake job offers
Fraudsters post 'dream' job listings on legitimate job boards or social media platforms, advertising high-paying remote roles with minimal qualifications. They may ask for upfront fees for training, background checks, or equipment. Once you pay, the job offer and recruiter evaporate.
3. Fake data entry or survey jobs
These scams promise easy money for completing surveys or data entry tasks but often require an upfront investment for access.
Remember, many such job offers abroad often come with risks. As I mentioned
in this column in August 2024, the embassy of India at Yangon in Myanmar rescued hundreds of Indians from the clutches of international crime syndicates operating in the Myanmar-Thailand borders. These jobseekers were kidnapped in the name of providing information technology (IT) jobs in Thailand.
4. Salary in cryptocurrency
Similar to other job scams, here too, the 'employer' offers huge salaries, but in cryptocurrency. And for the cryptocurrency, you are required to invest in advance in the crypto wallet. In most cases, your wallet is guaranteed to stay empty!
5. Suspicious cold messaging
Many scammers impersonate legitimate companies, offering roles through email or text without an interview. Fraudsters also send emails with fake job offers that require you to share sensitive information or download malware.
While there are thousands of such fake job offers shared via emails and social media, if you are careful, you can easily spot some red flags. For example, job offers with extremely high pay for little work are often scams. Also, none of the legitimate companies or organisations demand upfront payment for the job or interview, so if there is any such requirement, it is a scam.
Some fraud or fake job offers may have some spelling mistakes and would often use generic greetings like 'Dear applicant'.
Fraudsters are also found to create a sense of urgency to make you act or respond to the job offer without thinking.
This brings us to the most important question about detecting and protecting from fake job offers.
Here are a few suggestions...
1. Research the company: Verify the company and employer's legitimacy by checking its website, social media presence, and reviews on platforms like Glassdoor or Indeed.
2. Be cautious with personal information: Never share sensitive details like your Aadhaar number, bank account, PAN card details or passwords.
3. Avoid upfront payments: Do not pay for training, equipment, or application fees. Legitimate employers cover these costs.
4. Check email domains: Authentic companies use official email domains (e.g., @companyname.com), not generic ones like Gmail or Yahoo.
5. Trust your instincts: If something feels off or too good to be true, it probably is. Seek a second opinion from a trusted friend or family member.
6. Use secure job platforms: Stick to reputable job boards and avoid responding to unsolicited job offers via email or social media.
7. Educate yourself: Stay informed about common scams and report any suspicious activities to law enforcement agencies like your local police station.
Remember, fraudsters are relentless, and once they know that you are seeking a job (mostly through your social media postings), they will bombard you with offers that are hard to resist. However, with the right knowledge (red flags) and tools (checking official portals), you can dodge their traps.
Legitimate opportunities require diligence and effort, not upfront payments or unrealistic promises. When in doubt, take a step back, research, and consult trusted resources before committing.
By staying vigilant and informed, you can protect yourself from falling prey to job scams.
How To Report Cyber Fraud?
Do report cybercrimes to the National Cyber Crime Reporting Portal http://cybercrime.gov.in or call the toll-free National Helpline number, 1930. To follow on social media: Twitter (@Cyberdost), Facebook (CyberDostI4C), Instagram (cyberdostl4C), Telegram (cyberdosti4c).
If the fraud is related to your bank account, you need to immediately send an email to the official email ID of your branch (you can find it on the bank's website or your passbook) with a copy to the bank's customer care. Even if you have called the official number for customer care, you must still send an email describing your conversation with the bank executive, along with the time, date, and duration of the call. This will be helpful if you face a liability issue with the bank.
