'Follow these 2 simple rules': Zerodha CEO Nithin Kamath's warning as financial scams surge

Zerodha founder and CEO Nithin Kamath issued a cautionary note on Monday, highlighting an alarming increase in scams using the name of his brokerage firm. He shared an informative video, which explains how Zerodha and its top executives' names are being used for defrauding people.   

"These fake app and website scams keep getting worse and worse," Kamath said, adding that not a single day goes by without hearing about such scams or receiving reports from affected individuals. "The scale of these scams is just insane."

Kamath explained that the scams exploit the widespread recognition of major brands and notable figures. "There are now countless phishing scams that take advantage of the familiarity of all major brands, celebrities, etc. The tricks vary—fake apps, fake websites, fake social media profiles, scam calls—but all with the same goal: to steal your money. We've discovered multiple such scams in the name of @zerodhaonline," he stated.

Addressing the psychological tactics used by scammers, Kamath noted, "These scams work because they take advantage of our emotions like hope, fear, and greed." To protect oneself, he advised, "Two simple rules that can protect you: 1. Never act in a hurry and always verify. 2. If something seems too good to be true, it probably is."

In a strong warning to investors, Kamath urged: "Be extremely suspicious about everything. If you're seeing this post, you're probably already aware of these scams, so please share this with your friends and family who might be more vulnerable."

Investor Neetu Khandelwal echoed Kamath's sentiments, stating that many scams could be avoided with a moment of caution. "In short, you respond, not react." 

Kamath's warning comes at a time when financial scams are becoming increasingly sophisticated, preying on emotions and taking advantage of technological familiarity to trap unsuspecting individuals.