Background of the Scam
A young mother from Kerala, who had been saving money for her young child's ongoing medical treatment, was targeted in an online job scam. The fraudsters contacted her through WhatsApp and Telegram and offered what appeared to be a work-from-home opportunity. She was told that she could earn attractive commissions by completing simple online tasks.The victim ultimately lost nearly ₹5.8 lakh, including money the family had saved for her child's treatment.
Anatomy of a Scam
The scam followed a pattern designed to gradually build the victim's trust before asking her to transfer larger amounts of money. It began with a seemingly legitimate work-from-home opportunity, offered through WhatsApp and Telegram, which promised commissions for completing simple online tasks.
Furthermore, the scam depended entirely on continuous interaction and deception. Rather than immediately asking the victim for a large sum, the fraudsters first asked her to make a small payment. That money was then returned along with a profit. This was an important part of the scam: the successful return of money appeared to confirm that the work and payment system were genuine.
Having established this trust, the fraudsters gradually increased the amounts the victim was asked to pay. Each payment was presented as part of the process of completing tasks, earning commissions, or accessing her accumulated earnings. By the time larger sums were being demanded, the victim had already received an initial payment and profit and had invested her own money into the scheme. The fraud was discovered when the victim attempted to withdraw her supposed earnings and was asked to make further payments before the money could be released. At this point, it became clear that the promised earnings and withdrawal process were being used to obtain further payments rather than provide her with any genuine income.
How the Victim Sought and Received Help
The victim acted immediately after realising that she had been scammed. She reported the fraud through the National Cyber Crime Reporting Portal and to the local police.
Because she reported the fraud quickly, the authorities were able to identify and freeze ₹4.27 lakh from her final transaction before it could be transferred out of the recipient's account. The remaining money had already been moved through several other bank accounts and could not be traced.
The victim then obtained an order from the local Magistrate directing the bank to release the frozen amount. Despite the court's order and her compliance with its directions, the bank refused to release the money. The bank stated that the same account had received money from several victims across different states and that multiple court orders had been issued in relation to the account.
With the assistance of lawyers from SFLC.in, she approached the Kerala High Court through a writ petition challenging the bank's refusal. It was argued that she had acted without delay, allowing the authorities to identify and freeze the amount from her final transaction, and that the bank could not continue withholding the money despite a valid court order directing its release.
The case also raised a broader issue: where several victims claim money from the same frozen account, there may be no clear process for deciding whose claim should be dealt with first. The High Court examined this issue and sought clarification regarding the Reserve Bank of India's rules on the return of frozen funds in cyber fraud cases.
The petitioner ultimately succeeded in recovering the entire ₹4.27 lakh that had been frozen under lien.
How to Protect Yourself and Be Wary
- Be cautious of unsolicited work-from-home offers received through WhatsApp, Telegram, or other messaging platforms, particularly where the offer promises high commissions for simple tasks.
- Do not assume that an opportunity is genuine because the first payment is returned with a profit. In this type of scam, fraudsters may return a small initial payment deliberately to gain your trust before demanding larger amounts.
- A legitimate employer should not require you to repeatedly deposit your own money in order to complete work or withdraw your earnings. If you are asked to make additional payments to unlock your salary, commission, or supposed profits, stop sending money.
- Be particularly cautious if the amounts you are asked to pay keep increasing. Fraudsters may claim that another payment, task, fee, or deposit is required before you can withdraw your earnings.
- If you believe you have been scammed, report the fraud immediately. Quick reporting may allow the authorities and banks to trace and freeze funds before they are transferred through further accounts.
- Keep records of the messages, phone numbers, usernames, bank details, transaction receipts, and any other information connected to the scam. These records may be useful when reporting the fraud or seeking legal assistance.
- If any money has been frozen, follow up on the complaint and any action taken by the bank or investigating authorities. As this case shows, freezing the money does not necessarily mean that it will automatically be returned, and further legal action may sometimes be required.
Although WhatsApp and Telegram were the channels through which the fraudsters contacted the victim, the platforms did not cause the victim to transfer the money. However, they were used to deliver the fraudulent job offer, build trust over repeated conversations, and send instructions for each subsequent payment, and should nevertheless take steps to reduce the spread and effectiveness of such scams.
Messaging platforms should:
- Detect and flag accounts that repeatedly send unsolicited job offers, particularly where the same or substantially similar messages are sent to multiple users,
- Identify commonly reported scam patterns, such as offers promising high commissions for simple tasks or messages directing users to make payments in order to access earnings,
- Implement better reporting systems and faster action against accounts involved in repeated scam activity to make it more difficult for fraudsters to continue contacting new victims.