Fraud Alert: Beware of Tax Refund Messages & Ponzi Apps Offering 6% Daily Returns

Yogesh Sapkale 04 August 2023

Consumer Interest

A few weeks after the monsoon reaches its full majesty, most of us begin the annual ritual of scrambling to meet the 31st July deadline to file income tax returns (ITRs). There is a new ritual that has come up after this deadline is over—we begin to get bombarded with messages and emails about income tax refunds due to us. Unfortunately, these are from cybercriminals looking to trip you up by pretending to be the tax department. The scam operates by trying to get the taxpayer either to 'apply' or to verify something by clicking on the link sent in an email.

In this article, I will explain this scam and a dangerous new fraud that is a mix of a mobile app, money circulation or Ponzi scheme and cryptocurrency mining, together offering an unrealistically high daily return of 6% on your investment.

Income Tax Refund Frauds

Fraudsters, well-versed with India's tax return deadlines, send SMS messages offering tax refunds. But they deliberately write a wrong bank account number and ask the recipient to rectify it by clicking on the link in the message to have the refund credited.

The SMS is sent from a mobile number that does not contain the SMS header of the I-T department; it reads: "You have been approved an income tax refund of Rs. 15490/-, the amount will be credited to your account shortly. Please verify your account number 5XXXXX6755. If this is not correct, please update your bank account information by visiting the link below. httpxxxxxxxxxxx"

Remember, the I-T department never sends SMS using private mobile numbers. It always uses official SMS headers registered with telecom companies like TM-ITDCPC. Also, the tax authority informs the taxpayer about any refunds due to them only through a registered mobile number.

What you need to remember is that the tax department already has all the details required to process your refunds, such as the name of your bank, your account number, PAN number and email or phone number. Since it is an automated process, once your ITR is scrutinised, you will receive the refund, if any, directly in your bank account. You will also receive an email intimation from the I-T department specifying the refund amount.

Earlier this week, the fact check team of the Press Information Bureau (PIB) also cautioned taxpayers about tax refund scams and asked them to refrain from sharing personal information by opening the link in such messages.

A viral message claims that the recipient has been approved for an income tax refund of ? 15,490.#PIBFactCheck

?? This claim is ????????.

?? @IncomeTaxIndia has ?????? sent this message.

?????????????? of such scams & ?????????????? from sharing your personal information. pic.twitter.com/dsRPkhO3gg
— PIB Fact Check (@PIBFactCheck) August 2, 2023

I used online link-expanding tools to check the original URL of the short link shared by fraudsters. It showed mypustak.com as the original URL, but other details of this domain are hidden or not accessible, a message from checkshorturl.com shows.

By being vigilant and taking necessary precautions, you can reduce the risk of becoming a victim of tax refund frauds.

Ponzi App, Crypto Mining Scam

Earlier this week, the economic offences wing (EOW) of Odisha police arrested Krishnananda N from Karnataka for cheating people through the GETSO earning app. Krishnananda, posing as a manager of GETSO on a WhatsApp group, induced investors to get high returns of 6% daily on the invested amount apart from the daily withdrawal facility. In effect, by investing just Rs100, the scammers were offering to pay you six rupees every day until you remained 'invested' in the 'business'.

During the investigation, the EOW discovered that the scam was probably more than Rs144 crore. The fraud company was running online money circulation in the form of a pan-India crypto mining operation. The amount of invested money and the number of investors may end up a lot higher as the police investigation progresses. An IANS report says that Rs26 crore was routed through the account of the arrested accused, Krishnananda.

A police official told the news agency that GETSO falsely claimed to be a Washington-based company on its website and mobile app. The mobile app is available in Google Play Store with over 10,000 downloads. It also used some YouTubers to promote the scheme, like 'Earning Guru Mj'.

Many people are lured by offers of unrealistically high returns and end up losing large chunks of their savings. The lesson here is: 'Do not invest money in any product you do not understand'.

How To Report Cyber Fraud?

Do report cyber crimes 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).

Are you a victim of Online Financial Fraud? Immediately call helpline Number 1930 and register your complaint at https://t.co/cr6WZMOi4c pic.twitter.com/HZqUMKSDNF
— Cyber Dost (@Cyberdost) October 12, 2022

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.

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