It does not matter whether you are the largest economy of the world or the country with the second largest population, scammers never discriminate. You could say they are some really great hard workers, who would not stop scamming people even during pandemics like the recent COVID-19. India is home to hundreds of millions of people who live below the poverty line. They are looking for ways to make both ends meet, which means it is the perfect target market for scammers. And rightly so, neuercapitalscam explains the following seven scams were able to hurt Indian people financially. If you see them again in any form, report them to the police or just stay away.
The 7 Worst Financial Scams of India
1. The Scam of the Punjab National Bank
You thought banks were the places where you could keep your money away securely? Well, that did not prove to be true in this particular instance. Punjab National Bank acted as a hub of scams when all of the senior officials working for the bank start looting people through a well thought-out scheme. If you look at the banking scams in the history of the country, you will not find another as big as this one. You will be shocked to know how much money was earned through corrupt means in this scam. To be precise, it was more than $1 billion.
The mastermind behind this scam was Nirav Modi, a jeweler who you would call an innocent person if you judged people by their faces. Unfortunately, as it happens most of the time to the rich people, the people who were behind this scam were able to run away. Nirav Modi is still at large despite the fact that Inerpol is searching for him too. The scam involved the use of LOUs to transfer money from the bank in the name of diamond and other jewelry transportation. The scam worked for several years before it got uncovered and investigations began.
2. Hawala Scam
You know a scam is going to be big when there are politicians involved in it. Unfortunately, South Asian countries face such scenarios more often than not. Many politicians in these countries are involved in money laundering. What makes matters worse is that they never get caught even if everything comes out in the open and becomes public. This particular scam also involved a lot of politicians from the ruling political parties of India. The money in this particular scam was used for bribing various entities to complete illegal tasks. Some of the biggest names in Indian politics were named in the scam.
What’s interesting is that the money used in the scam was also associated with cross-border terrorism acts. You will be sad to know once again that nothing was done about this particular scam. The cases were opened, they ran for a few years in the courts, but then they disappeared and were hidden by other hot news.
3. Bofors Scam
This is an old scandal, not a scam entirely. However, you are talking about hundreds of thousands of dollars in scam. The worst thing about this particular scam is that it involved another country. Usually, such scams always hit the public hard. They are run in the name of the country’s security. People are told that the government is doing all it can to make the country a better place for them. However, that is not how things happen. The same transpired in this particular scam wherein the public was happy the country was becoming stronger because of an arms deal with Sweden.
However, the contract of making arms was given to a company based on favoritism. The politicians involved in the scam were bribed with hundreds of thousands of dollars. The size of this scam might not seem big to you at first because all that was looted was just 64 crores of the local currency. However, it you convert that amount and adjust it for inflation, the scam with the public cost the treasury of the country more than 400 crores of the Indian currency.
4. The Broker from Gujarat Scam
You should be surprised when you know about a Finance scam in India that does not involve politicians. In this particular scam, there were no politicians involved directly. However, the then Prime Minister of the country was definitely named by the person who perpetrated this particular scam. It is amazing how some people are able to fool banks and scam with their money. That’s what happened in this particular scam. The person behind the scam was Harshad Mehta, who was nothing more than a broker helping the banks with their funds.
He was supposed to help banks with their internal transactions. However, he would get the funds from the banks and put them into the local stock market. He continued to do that for many years before he got caught. The most amazing thing is that he was so good with his scam that he caused a significant impact on the local stock markets with his investments, which he used to make with the money he got from the banks. Now, was there a politician involved in the scam? Not really, but the mastermind of the scam did blame the Prime Minister of the country at that time of accepting bribes from him for not catching him.
5. The Chit Funds Scam
Talk about a Ponzi scheme, and this one was a perfect example of that. You will be surprised to know that this particular scam was pretty successful until the day it was caught. The whole scam involved Saradha Group, which was operating with lots of children companies. These small companies were all about making poor people rich by investing their money. That was the idea that attracted hundreds and thousands of people to fall into this particular trap. So, the company trapped investors of small size and offered them its services.
The company told these investors that they were going to make a lot of money. Now, how did the company convince so many people to invest in it? Well, it made a lot of investments in its marketing. It would use the names and faces of the biggest sports players and move stars to promote its scam. That’s what made people invest so much with this company. The regulating authority in the country came into action and stopped the company from spreading its services any further. The scam had run its course for nearly eight years before it came to an end.
6. The Coal Scam
You will usually find information about this particular scam with the name “Coalgate”. You must have guessed it already; yes, there were politicians involved in this particular scam as well. While there are many scams in which politicians have gotten their hands dirty in India, you might not find many that are as big as this one. When the public got to know about this particular scam, they were more than startled. Of course, they would expect their politicians to accept bribes and work on small commissions, but this was big. The allocation of more than 190 coal mining locations illegally was not something that the nation could have taken lightly.
This was a billion-dollar scam and you could create a huge list of the politicians who were involved in it. Did anything happen to the people who became rich because of this scam? Not really! The public is still waiting for anyone to be made a lesson to the world for doing corruption. It is one of the biggest scams in the history of India and also the one that involves the largest number of politicians in it.
7. Bitcoin Scam
Of course, you could not have seen a list of scams without the name of “Bitcoin” in it. It does not matter which country you are talking about, if you are going to mention scams in recent years, you will definitely name a few involving Bitcoin. Avika Mishra and Manoj Patel are the two people who were clever enough to scam people in the name of the newly rising cryptocurrency market. They would ask people to make small investments in their venture to get good profits. What was the venture? Well, they were supposedly using the money to buy and sell Bitcoin to make more money.
Cryptocurrencies get a lot of attention today. Young minds in India get to know about cryptocurrencies, especially Bitcoin, from the internet. They are then interested in making money by trading these digital assets. These scammers might still be out and scamming people because according to the law enforcement departments, they did not stop their scam. Instead, they are now running it from a different website.
If you live in India and are interested in spending your money in cryptocurrencies, you should show due diligence and spend time researching before you shell out your money. Furthermore, you should only trust established and trusted names if you want to invest your money through brokers. Do not trust new companies unless you have researched them well.