Financial scam: courier companies in the crosshairs

Financial fraud, increasingly sophisticated in the age of the pervasive internet, has become a regular phenomenon. The latest in chronological order involves courier companies, with a scam that is rapidly spreading.

Under the name of FedEx: a worrying example from the CEO of Zerodha

Nithin Kamath, co-founder and CEO of Zerodha, India's leading brokerage firm, recently reported an alarming incident on his social media channels. One of his collaborators fell victim to this fraud, perpetrated by exploiting the name of the well-known courier company FedEx. "There is a new scam involving FedEx, Blue Dart and other courier companies that you need to be aware of," Kamath warned, alarmed by the new threat.

The modus operandi of the scam: an alarming story

According to the CEO of Zerodha, a colleague of his received a call from an individual claiming to represent FedEx, asking for money to release a package. “This person claimed that a package had been confiscated by the police as drugs were found inside. As my colleague was waiting for a shipment from an e-commerce platform, he panicked. Later, he received a video call from an individual who claimed to be a police officer and presented an official-looking letter. They shared bank details to transfer the funds needed to release the package," Kamath detailed.

The fact that the alleged police officers were in possession of her Aadhar number made the scam all the more convincing. Kamath's colleague, in a panic, immediately transferred the requested money. This incident serves as a cautionary tale: If it could happen to one employee of a company that constantly raises awareness of the dangers of online fraud, it could happen to anyone.

Prevention advice: how to react to scams

Kamath, known for his educational tweets about the stock market, suggested a way to deal with similar situations. The most effective advice is to refer to a lawyer. "In such a situation, the best thing to do is say, I'll let my lawyer talk to you. It doesn't even matter if you don't have a lawyer. Most scammers try to exploit people who panic and react d' instinct. Taking your time before reacting is key," he said.