Cashback Scams In India: How To Stay Safe?
Cashback scams are becoming increasingly prevalent in India. Scammers often imposter as a brand and send a malicious SMS or a link on social media platforms directing to some attractive cashback reward. Many people fall prey to this and end up losing their account details and money.
By being aware of such scams, you can prevent yourself and others from falling victim to them. As a responsible organisation, we at Groww would like to illustrate how cashback works on our platform and help you understand how to safeguard yourself from cashback scams.
How Does Groww Cashback Work
When you pay bills using Groww UPI, you have a chance to get cashback. The cashback is only for bill payments and recharges. In the case of Groww, all cashback rewards are automatically added to your account, and you do not need to do anything extra to claim it.
You can use this cashback for your next bill payments or recharges. Moreover, remember you cannot use the cashback to buy stocks, mutual funds, or any other investment products on Groww.
How May the Groww Cashback Scam Happen
Usually, cashback fraud begins with you receiving notifications that you have won a cashback. Captivated by the promise of cashback, you may click on the link provided, which then leads you to a website that looks similar to Groww. Once on the site, you learn that you have received a cashback, supposedly around ₹1,000, and you are prompted to transfer this cashback to your Groww account. Due to the site's resemblance to the authentic Groww app, you may overlook any discrepancies.
After clicking the send button, you are redirected to the Groww app installed on your device Here, you are prompted to pay the cashback amount. This manipulation will exploit your psychology, leading you to complete the transaction without realising that you are making a payment instead of receiving funds.
People who do not understand UPI-based app functionalities generally fall for such scams. It relies on the presence of a UPI payment app on the victim's smartphone, making it ineffective on computers. Each click on the link leads to a new cashback offer, further enticing potential victims.
Tips to Save Yourself From Cashback Scams
Now that you understand how this scam would work, you must consider the below essential tips to save yourself from such cashback scams:
- Groww app never calls you directly and asks for sensitive information. If you receive such a call, never respond and report it to the authorities while blocking the number right away.
- The app does not tell users to go to other websites for cashback or rewards. You will only find out about new offers through your registered email or the app itself, not through browser notifications.
- Most scammers get your contact details from social media sites where privacy settings are set to Public. To prevent other scammers from accessing your details, change your privacy settings.
- If you get a link via WhatsApp or SMS from someone pretending to be from Groww, do not click on it. It is safest to ignore any cashback offers from these platforms.
- When you get money, you do not have to tap the ‘Pay’ button or enter your UPI PIN. Remember, you only need to enter your UPI PIN to send money or check your bank balance.
- Be wary of fake news and scams, such as shop-back scams, in messages and links from various platforms. Watch out for typos, different designs, or anything else unusual so you can verify if the link is deceptive.
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▶️ You may also want to know How to Stay Safe from Money Doubling Scams |
The Bottom Line
Staying safe from cashback scams in India, such as those targeting Groww users, requires vigilance and awareness of common tactics used by scammers.
Understanding how these scams operate and following the essential tips above can help you safeguard your personal information and financial resources. Additionally, remember to always verify offers directly through trusted sources and never hesitate to report suspicious activity to the appropriate authorities.