The RBI has instructed banks and payment institutions to incorporate the telecom department’s (DoT) financial fraud risk indicator (FRI) into their systems in light of the increasing number of cybercrimes.
The RBI guideline, released on June 30, seeks to use cutting-edge technologies to combat cybercrime. The DoT hailed the action as a turning point. In a statement, the DoT claimed that the RBI’s directives mark a turning point in the battle against financial crimes made possible by cyberspace and demonstrate the effectiveness of interagency cooperation in protecting individuals in India’s expanding digital economy.
FRI is a risk-based statistic that was introduced in May and links a cellphone number to the level of financial fraud. Data from DoT’s Chakshu platform, the government’s cybercrime reporting portal, and information provided by banks and financial organisations are used to highlight the numbers.
This makes it possible for the appropriate parties to take further consumer protection steps to stop financial frauds committed using high-risk mobile numbers.
Real-time FRI allows banks and other financial institutions to take preventative steps like rejecting suspicious transactions, warning or alerting clients, and postponing high-risk transactions.
FRI Already Deployed on Fintech Platforms
Real-time response and ongoing feedback to improve the fraud risk models are made possible by an API-based platform that automates data interchange between banks and DoT’s digital intelligence platform, which has created FRI.
According to the DoT, the platform has already been implemented in banks like HDFC Bank and ICICI Bank as well as fintech companies like PhonePe and Paytm.
The DoT went on to say that as UPI is the most widely used payment mechanism in India, this action may prevent millions of people from being victims of cybercrime. The FRI makes it possible to take prompt, focused, and cooperative action against suspected frauds in the banking and telecommunications meantime, it has sectors.
In the been claimed that the National Quantum Mission (NQM) is creating a task force to help banks implement the new technology for data analysis, financial modelling, and cybersecurity. The task force will assist banks in creating rules for the shift to quantum technologies, according to a media source.
A draft of these standards is expected to be made public in the coming months following government approval. One of NQM’s initial milestones, a long-distance quantum key distribution (QKD) network, is anticipated to be completed by the end of July or the beginning of August, the article also stated.
Cybercrime on the Rise in India
Indians lost INR 1,935.51 Cr to digital arrest frauds in 2024, Bandi Sanjay Kumar, the minister of state (MoS) for home affairs, said in the Parliament earlier this year. He added that in the first nine months of FY25, cyber frauds cost INR 107.21 Cr.
According to reports, the Centre has shut thousands of WhatsApp accounts used to spread online fraud, along with lakhs of SIM cards and IMEIs (International Mobile Equipment Identity).
To combat growing online fraud, the National Payments Corporation of India (NPCI) plans to gradually phase out collect phone transactions for merchant payments on the Unified Payments Interface (UPI). By lowering the possibility of illegal fund withdrawals, this ruling attempts to minimise fraudulent transactions in which retailers ask for payments from clients. Through their UPI app, retailers can begin payment requests that customers confirm through a collect call transaction, commonly referred to as a pull payment. However, scammers are increasingly using this technique to trick customers into approving illegal payments by fabricating websites or businesses. In order to improve security, NPCI is concentrating on push transactions, which lower the chance of fraud by allowing users to initiate payments on their own by manually entering merchant information or scanning QR codes.
Significant Shifts in UPI Transactions as Collect Call Payments Fall
In February 2025 alone, UPI processed 16 billion transactions, 10 billion of which were merchant payments, making it the most popular digital payment mechanism in India. UPI transactions have increased by 46% in the last year, from 117.7 billion in 2023 to 172.2 billion in 2024. Notwithstanding this expansion, collect call transactions—in which retailers ask clients for money—are declining in frequency. Direct UPI connections through payment service providers are becoming more popular among big organisations and e-commerce platforms. According to industry experts, collect phone transactions currently account for fewer than 3% of all merchant payments. Peer-to-peer (P2P) transactions are less common because NPCI has already capped pull transactions at INR 2,000 per request.
Additionally, less than 3% of all UPI payments are made using these transactions, indicating a move towards safer payment systems where users start the transfer on their own. Banks are currently advocating for the reinstatement of the Merchant Discount Rate (MDR) on RuPay and UPI debit card transactions due to modifications in UPI security. To encourage the use of UPI, MDR, a nominal fee assessed to companies for handling digital payments, was previously eliminated. MDR may have an impact on small firms that presently benefit from free digital payments if it is reinstated, perhaps raising the cost of UPI transactions for them. In order to ensure the security of UPI payments, NPCI is developing new methods to check businesses as collect call transactions become outdated. The specifics of these new regulations are still being worked out, but they may force banks and payment service providers to perform more stringent background checks on companies.
India Sees a Sharp Increase in Digital Payment Fraud
Digital payment fraud has grown significantly, according to data from the Reserve Bank of India (RBI), which shows a dramatic rise in scam instances. According to a Business Standard report, 13,133 fraud instances involving cards and digital banking were registered in the first half of FY25, resulting in losses of INR 514 crore. Over 29,000 occurrences of digital banking scams occurred in FY24, and scammers stole an incredible INR 1,457 crore. By deceiving clients into approving payments for services or goods that do not exist, fraudsters frequently take advantage of pull transactions. Many smaller retailers continue to evade know-your-customer (KYC) verification, which makes fraud easier to carry out, in contrast to major online retailers like Flipkart and Amazon, which interface with regulated payment aggregators like PhonePe and Paytm.
Sanjay Malhotra, governor of the Reserve Bank of India (RBI), has counselled banks to set up strong and proactive procedures to stop the nation’s growing number of digital frauds. In order to reduce the risks associated with information technology (IT) and cybersecurity, the governor of the RBI also asked the financial institutions to strengthen oversight over their third-party service providers. Additionally, he urged the banks to enhance digital literacy and keep making technological investments. The governor made the remarks on January 27 in Mumbai while meeting with the chief executives of banks in the public and private sectors. In addition to Malhotra, the conference was attended by deputy governors Rajeshwar Rao, T. Rabi Sankar, and Swaminathan Janakiraman. In a statement, the central bank said that these exchanges are a part of the Reserve Bank’s ongoing communication with the top executives of the companies it oversees. The comments are made at a time when private companies and Indian government institutions are being bombarded by cyberattacks.
Sharing his thoughts on the comments, Appalla Saikiran, Founder and CEO, SCOPE, stated, “The financial sector is undergoing rapid digital transformation, increasing opportunities but also increasing the vulnerabilities encountered by modern financial institutions. It has become imperative for financial institutions to herald mechanisms built through the front gate in the fight against online fraud. As cyber threats continue to grow both in volume and complexity, the industry must step up from reactive measures to proactive ones that have security and consumer trust at their centre.”
“State-of-the-art solutions like machine learning (ML) and artificial intelligence (AI) thus have the potential to revolutionise the current fraud-prevention technologies. This is repetition but important as they give financial institutions an incredible ability to mine vast amounts of data in real time to spot abnormalities and act instantly on potential threats. Appropriate identification procedures and encryption are the most decent means to protect sensitive data from illicit access amongst the privacy-breaking actions,” he added further.
Cyber Criminals Looted Around INR 177 Cr in FY24
India lost INR 177.05 Cr to cyber scams in FY24, more than twice as much as INR 69.68 Cr in FY23, according to various published reports. The number of online scams in the nation increased by 334% year over year (YoY) to 29,082 in FY24, according to an RBI data. Nearly 300 tiny local banks’ payment systems were momentarily shut down by a ransomware attack on C-Edge Technologies just last year. C-Edge Technologies supplies banking technology systems to small banks nationwide. The Supreme Court’s official YouTube channel was hacked in September 2024 to show videos endorsing a cryptocurrency created by Ripple Labs, a US-based corporation. The Centre has increased its efforts to stop these cases in the interim.
Government Enhancing the Security Channels
In order to combat the growing number of cybercrimes in the nation, Home Minister Amit Shah stated last year that the government was seeking to establish a central registry of suspects. The “Citizen Financial Cyber Fraud Reporting and Management System,” which the government also established, has prevented scammers from stealing more than INR 2,400 Cr. To increase awareness of cybersecurity in India, fintech unicorn Razorpay partnered with the Indian Cyber Crime Coordination Centre (I4C) and the Ministry of Home Affairs (MHA) in December.
DOT’s Request to Telcos
The telecom department ordered operators to play a caller song about cybercrime awareness eight to ten times a day for three months last December. The Indian Cybercrime Coordination Centre (I4C), a cybercrime wing under the Home Ministry, has supplied the caller tunes, as per the order copy that was delivered to the telecom carriers.
According to the order, caller tune audios will be played through pre-call announcements and ringback tones, which will be supplied to TSPs by I4C nodal officers in order to raise public awareness of cybercrime through the caller tune campaign. A subscriber may hear caller tunes eight to ten times every day.
People usually think that they just need a paycheck to become rich. If they keep making money and spending it simultaneously, they’ll be rich. But we very well know the secret to becoming rich is way beyond just paychecks. A better understanding of this can be taken from the example of those billionaires who didn’t think twice before spending and ultimately, filed for bankruptcy.
This article covers those billionaires who declared bankruptcy or claimed to be completely broke at some point in their lives. Now, you might be thinking, what makes a person bankrupt, especially when they have billions of dollars? Various factors come here such as lousy investment, massive fraud cases, economic downturn, and many more. But the bottom line here is, that they didn’t plan any backups and went on and on with their money. And that’s what sank their ship!
As we have a basic understanding here, let’s get on with knowing the stories of how these billionaires become bankrupt.
We can get started with Mike Tyson, the super famous fighter who used to earn up to $22 million per fight, which ultimately became a lifetime earning of half a billion dollars. Even after such big paychecks, he filed for Chapter 11 bankruptcy in 2003 as per the Benjamin Law. The reason for this bankruptcy is the huge debt that sank him.
The debts were so high that the law firm reported that Mike Tyson owed $38.4 million to the creditors which included the Internal Revenue Service along with his ex-wife, Monica Turner.
Elizabeth Holmes
Occupation
Founder and CEO, Theranos
Bankruptcy Year
2013
Reason for Bankruptcy
Fraud
Elizabeth Holmes – Billionaire Who Became Bankrupt
The woman who made it to the cover of Forbes for founding the incredible startup worth $9 billion, Elizabeth Holmes, was forced to declare bankruptcy. She was convicted of criminal fraud through her company, Theranos. Her company claimed to be developing a revolutionary blood test that will come in the form of testing hundreds of diseases and medical conditions with just a few drops. But later it was proved that the company was not even close to developing such technology. This resulted in Elizabeth Holmes awaiting sentencing for facing up to 20 years in prison.
Aubrey McClendon – Billionaire Who Became Bankrupt
The next in the line is Aubrey McClendon, co-founder of Chesapeake Energy, which is an oil and gas company with a net worth of $1.2 billion. He was accused of unfair manipulation of bids for drilling rights along with charges of federal conspiracy. However, due to an unfortunate car accident, McClendon died a day later of the accusations.
A very well-known name in India, Vijay Mallya was an airline and liquor tycoon famous for his luxurious and high-flying lifestyle. He was the owner of Kingfisher Airlines, which is a now-defunct Indian airline.
Eike Batista, the name that was made the seventh richest person in the world, ultimately declared bankruptcy. He was an oil baron with the oil company, OGX. However, due to his failure in managing the production target, he started losing money. And the situation worsened when Brazil’s economy suffered a tough time.
And when in the year 2012, Eike Batista’s net worth was estimated to be $30 billion, it fell into money laundering and corruption and he filed for bankruptcy.
Sean Quinn
Occupation
Founder, Quinn Group
Bankruptcy Year
2011
Reason for Bankruptcy
Debts
Sean Quinn – Billionaire Who Became Bankrupt
This Irish Businessman who was once noted as the richest man in Ireland according to Forbes went bankrupt because of huge debt from the banks. Starting with cement manufacturing, Quinn’s biggest decision of entering the hospitality industry turned the way. In 2008 it was estimated the Quinn group owed 2.8 billion British pounds to the Anglo-Irish Bank. A lavish lifestyle without debt repayment and owning luxurious hotels as a new venture put down Quinn completely.
Another hard fate that hit Quinn was Quinn’s insurance levied a sum of 3.25 million pounds and 200000 million pounds personally. This was due to Quinn Insurance issuing loans against the Financial regulation of Ireland. The wholesome amount was used in investing in stocks and for other luxuries.
In the year 2012, the Ireland government declared Sean Quinn bankrupt and was sent to jail for 9 weeks. Perhaps Quinn used the law “Right to be Forgotten” to delete his lavish lifestyle details from the internet.
Bernie Madoff
Occupation
Founder, Bernard L. Madoff Investment Securities
Bankruptcy Year
2008
Reason for Bankruptcy
Ponzi Scheme
Bernie Madoff – Billionaire Who Became Bankrupt
Bernie Madoff, the biggest fraudulent sentenced to 150 years punished ever in the history of mankind. This man ran the biggest and longest Ponzi Scheme over 17 continuous years. The Ponzi Scheme was worth 65 billion dollars. He netted many investors to invest in the scheme by attracting them to an investment firm named Penny Stock Brokerage. The fraud worth was 65 billion dollars. But it was all known to the world when Madoff confessed the whole matter to two of his sons and that’s where the game began. The unimagined thought of Madoff was his sons Mark and Andy revealed the entire story to the FBI. The shocked FBI arrested Madoff and punished him serving 150 years sentence with forfeiture of 170 billion dollars. Many of his investors killed themselves, Mark’s suicide two years after the tragedy, and the entire fraud life of Madoff remains.
Björgólfur Guðmundsson
Occupation
Chairman, Landsbanki
Bankruptcy Year
2008
Reason for Bankruptcy
Global financial crisis and business troubles
Bjorgolfur Gudmundsson – Billionaire Who Became Bankrupt
Iceland’s second richest man Björgólfur Guðmundsson went bankrupt for over 500 million Euros in the year 2008. He was already jailed for about a year on a bookkeeping offense in the early 1990s. After becoming the chairman of the bank Landsbanki, Björgólfur Guðmundsson misused a lot of money and became a disaster for Iceland’s economy. He owed more than 500 million dollars personally which devastated his faith.
Robert Allen Stanford alleged massive ongoing fraud of 7 billion dollars and over amounts uncalculated. This biggest fraud ran the biggest Ponzi scheme under the name of Stanford Financial Groups which is defunct now. In 2009 FBI and SEC imposed several violations of acts on Stanford such as a money laundering case, a Ponzi scheme, violated financial securities, and many more. This mesmerizing brain manipulated many clients by showing hypothetical records as real data to pitch them and invest in him. Although tried to fly off from the US to Antigua with failed attempts he surrendered himself to the FBI in 2009 and the same year the Judicial Law of Florida sentenced him to 110 years. Being absent of guilt he even applied for an appeal in 2014 but got rejected in 2015.
Sam Bankman-Fried
Occupation
Founder, FTX
Bankruptcy Year
2022
Reason for Bankruptcy
Liquidity crunch
Sam Bankman-Fried – Billionaire Who Became Bankrupt
Sam Bankman-Fried had made his fortune through FTX exchange and Alameda Research trading firm and established himself as Crypto King. FTX crashed in November 2022 due to a liquidity crunch. The crypto exchange collapsed after it emerged Alameda had been using FTX customer assets to cover trading losses. Its users began withdrawing their investments at a rapid pace. As a result, Sam filed for bankruptcy for both of his firms.
On Nov 11, 2022, FTX filed for Chapter 11 bankruptcy protection in the US. The fall of FTX and bankruptcy filing have impacted the crypto industry worldwide.
Before FTX’s collapse, he ranked the 41st richest American in the Forbes400 and the 60th richest person in the world by The World’s Billionaires. His net worth peaked at $26.5 billion.
The US Court has charged him with Securities fraud, Wire fraud, and Conspiracy. He faces a maximum of 115 years in prison if convicted on all eight counts and sentenced to serve each charge consecutively. He has been released on a $250 million bond and is under house arrest. On Jan 03, 2023, he pleaded not guilty to fraud and other charges.
Jocelyn Wildenstein
Occupation
Socialite
Bankruptcy Year
2003
Reason for Bankruptcy
Debt
Jocelyn Wildenstein – Billionaire Who Became Bankrupt
The woman was famous as a “Catwoman” because of her looks, Jocelyn Wildenstein was a big socialite. Based on reports, she used to spend $1 million on shopping and $5,000 on her phone bill per month. She is a former wife of the late Alec Wildenstein, who used to be a billionaire in his days.
Later in 2018, Jocelyn Wildenstein declared bankruptcy and claimed that she had $0 in her bank account.
Anil Ambani
Occupation
Businessman
Bankruptcy Year
2020
Reason for Bankruptcy
Bad Investments, Debt
Anil Ambani – Billionaire Who Became Bankrupt
The younger son of Dhirubhai Ambani, Anil Ambani hasn’t had much luck since 2002. After his father’s death, the $15 billion Reliance business split, with Anil getting control of companies like Reliance Communications, Reliance Capital, and Reliance Infrastructure, while his brother Mukesh took over Reliance Industries.
In the past 15 years, he has gone from being the world’s sixth richest person with $42 billion in 2008 to facing bankruptcy, selling family assets to pay lawyers, and seeing his companies auctioned. He was even threatened with jail by the Supreme Court. Recently, the Securities and Exchange Board of India (SEBI) banned him from the stock market for five years in August 2024.
Conclusion
We can say that with mere paychecks, one doesn’t stay rich. Some of the billionaires are or were forced to file for bankruptcy in their lives. Many of these served jail time because of money laundering and severe debts, such as Allen Stanford, Eike Batista, and many more. To make you familiar with this, we rounded up these above-mentioned billionaires who filed for bankruptcy.
FAQs
Has a billionaire ever gone broke?
Usually, billionaires and their teams are smart enough to protect their wealth. However, unfavorablesituations can make them bankrupt. Adverse economic scenarios, bad investment decisions, or fraud can make billionaires file for bankruptcy.
Which billionaires went Bankrupt?
Some billionaires who became bankrupt are:
Mike Tyson
Elizabeth Holmes
Aubrey McClendon
Vijay Mallya
Eike Batista
Sean Quinn
Bernie Madoff
Björgólfur Gudmundsson
Allen Stanford
Sam Bankman-Fried
Jocelyn Wildenstein
Anil Ambani
Was Vijay Mallya a billionaire?
Yes, Vijay Mallya was a billionaire with a net worth ranging from $1 billion to $1.5 billion. in years 2006-2012.
How many billionaires are there in the world?
There are 2781 billionaires in the world as of 2024.
Are there times you get to some website and shake your head in disapproval after getting a business offer? Have you fallen for online lies and been left wondering how you couldn’t notice the conmen’s captivating language? This article will show and explain to you the most common frauds that you can fall for despite the intensity of your wits. Online fraud is a widespread problem because consumers often believe what they read, whether it is legit or not. We will tackle some of those seven most common online frauds that consumers cannot get past without getting hooked on. Let’s see.
Fraud is a criminal offense that a consumer falls for and is lied to about a purchase or a business opportunity, and they end up losing money. Many cases are the result of online fraud, like deception and conmen that sound valid when read. The following are examples of seven major cases involving fraud. They include:
Scams That You Will Get an Employment
Employment scams are the most common type of fraud that makes you stay glued to the screen, wondering about the payment. Everybody who is going through a financial crisis is bound to fall into this deception. The liar will ask for some fee so that you can get an appointment for an interview. Because of desperation, you will willingly send the money after they block you and delete the number or evidence.
It can be difficult to avoid falling victim to this type of fraud, even for individuals who are generally smart consumers. Scammers may simply exploit the desperation of individuals seeking employment, making false promises that seem like the most convenient way to secure a job. Whether you are a college graduate or still figuring out life, you need money. Most sites have been considered a full predatory zone with many scammers that have rendered many people hopeless to believe in blogs due to fraud. It’s not easy to take these criminals to court, making it an easy pass for cheating.
Collection of Tax Fraud
A survey that has been conducted has comprehensive statistics showing that scammers are cashing in a huge percentage of cash in fraud by collecting taxes. When the tax season begins, most people are not hesitant to consult the best people to file their returns. They head to the internet, pay scammers the tax, and fall for the deception. Whether you are wise or not, waiting until the last minute to pay your taxes can make you seek out online services and eventually fall for fraud. The scammers are very good at this, where they threaten to arrest you or get your property taken for compensation. They ask for the money to be sent to their debit cards or gift cards, and you end up getting conned.
Online Gifting Like Lottery Wins
Lottery fraud is a prevalent scam where the scammer calls and demands a small payment to enjoy your money. You are lured into this scam and end up believing in it. But come to think about it, who wouldn’t want such money as winning the lottery? The thought of getting such an amount of money for free is ecstatic, right? Many scammers have become so abundant because many youths are always on the internet.
An Exchange of Fake Checks for Cash
A fake check is revoked after some time. Bankers will not realize that they have been handed a phony check until the system notices. The online scammer will send the check to an online user, after which they will demand cash. Unfortunately, the person will not be willing to deposit fully, and eventually, the verification is rendered null. The scammer enjoys the benefits, and the online user, however smart they might be, won’t recover the cash.
These are electronic support sites that come at the ad part, assuring the user that they have a virus and need debugging. They ask for some cash in exchange for the fake service. The user falls for the trap because they imagine their expensive machine getting wasted. Several people have fallen for this trap set by the scammers.
Online Trading
Scammers are smart people, too, but in deception. They may create fake websites that resemble legitimate online marketplaces. Fraudsters will mark up the prices of items and promise free transportation if you place an order. You conveniently pay the money, but they fail to deliver the item. The scammers will claim not to have received any cash and apologize for not having an online connection, like missed messages and calls. They can also use the wrong check to compensate you. Adding the cherry on top, they will claim that they have sent extra cash and send them money. Due to your good morals, you fall for the trap.
How to Spot a Fake Website
Scams as a Result of Phishing
This is a type of scam that is not common because they lie online by pretending to be representatives of an institution. They ask for very vital information, including a password for your debit card. You end up exposing all your credentials, and they withdraw all the cash. However, this type of scam hasn’t been successful, and the percentage that falls for this cybercrime loses a hefty lump sum of money. You don’t need to be a smart consumer to evade this fraud because it sounds so legitimate.
Conclusion
Fraud is a common type of crime that has left a lot of people grieving over losses. You need to be careful, especially if you need a loan. The above are the most common types of fraud cases to avoid and be aware of. You don’t need to be smart to escape the wrath that comes from online scammers. A lot of people are on the net blindly, and they become victims of these cybercrimes. The only legit way of avoiding fraudsters is by considering legitimate sites to transact money.
FAQs
What are some common online frauds?
Some of the most common online frauds are:
Scams That You Will Get an Employment
Collection of Tax Fraud
Online Gifting Like Lottery Wins
Phony Technology Sites
Online Trading
What is fraud?
Fraud is a criminal offense that a consumer falls for and is lied to about a purchase or a business opportunity, and they end up losing money. Many cases are the result of online fraud, like deception and conmen that sound valid when read.
Talking about scams and frauds by businesses or companies has become a fad in today’s times. The list is going only upward while the innocents are being looted, it has become imperative to stay updated and informed regarding a company or business.
According to the Federal Trade Commission, USA mentions that fraudulent opportunities mostly occur in the top 10 categories in its database reports of consumers complaining about fraud activities.
In India, fraudsters are tough to avoid. With many unemployed job seekers, the list of fake companies in India is long. This act of swindling is growing at an enormous rate with high risk in our digitally enabled world.
To think of frauds, the use of the internet has given birth to many security challenges that people tend to get trapped in. Over the years, India has seen many corporate frauds that left a deep wound in the confidence of many investors. Companies like Satyam, Kingfisher Airlines, DHFL, and YES Bank are some of the big corporate frauds the country has witnessed.
These scam artists are sophisticated as they exactly know how, whom, and where to target customers. In terms of investing in any business, consumers need to look for proper information and must know their rights. If a business has no information available, then that should be treated as a red flag for not pursuing it further.
While keeping in view these corporate frauds, there must be an awareness program for identifying fraud companies. Until there are certain programs available, you can always cross-check a company on your own.
In this article, we have curated some tips on how to identify a fraudulent business or company.
Specific things to look out for in a company to know if they are real are as follows:
Check Whether the Company Is Registered by Visiting the MCA Website
In India, for a company to be licensed, they need to register itself with the Registrar of Companies. MCA is the short form for the Ministry of Corporate Affairs, which is a government-regulated online portal containing the details of all the companies that have been incorporated in India.
On this website, you can check for the registration number of a company, what type of a company is, the date of incorporation, and other such details.
Check Out if the Company Has a Website and Look For Other Details on Their Site
Even if the company has a website, try to get a closer look at the address and contact number. Every website has a ‘contact’ page, where the address and a telephone number will be given to get in touch with them.
Try calling them with the number provided and search on Google maps to verify it is an actual office and not a fake one. However, you should also keep in mind that phone numbers are super easy to fake, so depending only on this fact can never give a piece of accurate information about the company.
If the company says ‘local business’ on its website, try to search in other cities to see if they are running their operation in other localities. If they happen to show the same website in other areas as well, know that they are not right. These businesses usually have copied templates with many broken hyperlinks.
Check for Wrong Spelling and Grammar
Spelling and grammar are the two most important things that will impress anyone. Make sure you go through every detail given on the website, and if you notice unsatisfactory English sentences and wrong spelling, then it is time for you not to indulge with them. Inaccurate sentence formation clearly shows there is something wrong, and you should investigate further before coming to a final decision.
Check for Their Privacy Policy
Another thing you can look for in a company to be legitimate is by reading their privacy policy carefully. Read about their history that will give a brief about how long the company is in operation.
Even if they have a privacy policy read through their mission and vision statement and look for anything suspicious. Reading through their privacy policy will also allow you to give information about their registered business address and other details which you can check on the MCA website.
Check for Their Customer Testimonials and Reviews
Feedbacks or reviews are the best way to find out about a company. The reviews can reflect different people’s opinions and provide you with a concrete overall idea about the company.
Check if the Company Accept Payments
If you are trying to get employed by that company, remember they will never ask you to pay cash or any sort of payment. Other than this, if you are paying for any service, it is important to see how the company accepts payments.
They should accept payments through secure methods and not through shady and insecure methods like paper cheques or cash. Consider looking into payment methods from which you can your money back if things go wrong or if their product or service does not give you satisfactory results.
Conclusion
Scams are a part of the system, and we must accept that incidents like these are inevitable. It can be safe to say companies and the government, in general, must lay down a strong foundation system that keeps a close watch on such activities.
A substantial system with regular monitoring, a robust recruitment process by companies, and launching awareness programs for the public are the kind of things we desperately need.
The above-mentioned points are some of the factors through, which you can check a business’s lawfulness, but it is always better to trust your instincts if you feel something is wrong with the company.
FAQs
How do you know if a company is legit or not?
Check the trademark of the company, check their business on MCA, look for any grammatical errors, and check out the company privacy policy.
How do businesses identify and control fraud?
Many businesses develop a strategy against fraud, protect their businesses from cyber attacks, and know the customers in and out.
Day by day, something or other happens in cases related to fraudster or swindling. In India, such issues go viral and are often linked to businessmen duping money and getting away easily.
While there can be numerous reasons as to why someone can cheat or will cheat puts us to question our thoughts on the system. Things like these can be distressing to see when we don’t have the answers for ourselves.
As we are all aware that the breaking news of Ajay Singh getting arrested by the police has left many viewers anxious. The curiosity is only rising as to why and what happened that led to his incarceration.
Recently, Ajay Singh, an Indian entrepreneur and the Managing Director of SpiceJet airline, has been booked for defrauding a businessman of Rs 10 lakh worth of shares.
Born on the 29th of December 1965, Ajay Singh was brought up in Delhi’s Maharani Bagh area. His father belonged to Alwar, and his mother was from Meerut.
He did his graduation in engineering from the Indian Institute of Technology, Delhi, and holds an MBA degree from Cornell University in the United States. Besides this, he is also a law student and holds a degree from the University of Delhi.
Ajay Singh is married to Shiwani Singh. The couple has a daughter named Avani Singh, who is an alumnus of Standford University.
Career and Foundation of Spicejet
Ajay Singh co-founded India’s second-largest airline SpiceJet in 2005. He started the airline with the object to make airlines affordable for every Indian. After about five years since the inception of SpiceJet, Ajay Singh exited the company.
When the company was on the brink of shutting down, Ajay Singh decided to take over SpiceJet again. Soon after his leadership, the airline started to grow making it one of the best-time performers among several other airline service providers.
Ajay Singh is known for his all-rounder personality, such as being a businessman, sports administrator, bureaucrat, and investor. He is currently the Chairman and Managing Director of SpiceJet.
Ajay Singh is fond of sports and games. Keeping in view his liking for sports, he is the President of the Boxing Federation of India, and Associate Vice President of the Indian Olympic Association. On 25 September 2016, Ajay was elected as the President of the British Film Institute (BFI).
He is also the first-ever Indian to Chair the Aviation, Travel and Tourism Governor’s meeting at the World Economic Forum, Davos in 2019.
Due to his sharp leadership skills, SpiceJet was responsible for the Boeing order of making 50 Bombardier Q400 planes. The order was approved by then US President Donald Trump.
Political Alliances of Ajay Singh
Many believe Ajay Singh to be the BJP’s right-hand man. He is the go-to person for every member of the party for any kind of political advertisement.
Ajay Singh is associated with politics as he managed the campaigning for the BJP during the 2004 and 2014 general elections. He is the man behind the famous slogan, “Abki Baar Modi Sarkar”, which translates to Now is the time for Modi Government.
Most of the opposition parties refer to him as “Chhota Ambani or Chhota Adani of Narendra Modi for being privileged under Modi’s political clout.”
Why Was Ajay Singh Arrested?
Amit Arora, a Gurugram businessman has filed a complaint against the Managing Director of SpiceJet, Ajay Singh for delivering a fake Depository Receipt (DIS) worth Rs 10,00,000 shares.
In his complaint, Amit Arora revealed that Ajay Singh had promised him shares worth Rs 10 lakhs of SpiceJet for the services Amit had provided him during the time when Ajay brought over the airline from the promoters.
He claims that when he approached Ajay, he handed him a depository slip, which was later found out to be invalid. Upon reaching him several times, Ajay Singh denied paying him the shares.
Since there was no option of getting the shares from Ajay, he pressed the charges against him. Additionally, he has claimed that Ajay has been cheating many others in the same manner. He got to know from a source that a person named Chetan Nanda and Priti Nanda had charged a criminal complaint against Ajay Singh and that they were duped of their shares in the same manner.
On 11 July 2022, Ajay Singh has been arrested by the Gurugram police under Sections 406 (criminal breach of trust), 409 (criminal breach of trust by a public servant or banker, or agent), 415 (deception), 417 (cheating), 420 (cheating and dishonesty) of the Indian Penal Code.
To clarify the allegations against Ajay Singh, an official from SpiceJet has stated that these allegations are done to defame Ajay Singh and are inauthentic. The company is soon going to file a defamation suit against Amit Arora, who is the complainant.
The administrator from SpiceJet said,
“A frivolous, mischievous and completely bogus complaint has been filed by a liquor dealer Amit Arora with Gurugram police with an intention to hurt SpiceJet and Ajay Singh’s image.”
Conclusion
The case is under investigation. Some reports suggest that the high court has issued the case as a non-bailable warrant against Ajay Singh as he was unable to appear before the court due to covid isolation. Only time can tell what will happen next.
FAQs
Why was Ajay Singh arrested?
Ajay Singh, the chairman of SpiceJet was arrested for defrauding a Gurugram businessman for Rs 10 lakh worth of shares.
Who is the owner of SpiceJet?
Ajay Singh is the owner, chairman and managing Director of SpiceJet.
Upstox is the leading discount broker in the country. Upstox was formerly known as RKSV technologies. Upstox is backed by some of the top investors in the country which include Tiger Global and Ratan Tata. The company has nearly 30 Lakh users making it the second-largest stockbroker in the country.
Over the last few years, Upstox has increased its client base and ramped up its operations because of the easy availability of Smart Phones and cheap data prices. Recently Upstox had signed up with the Board of Cricket in India to be one of the sponsors of the Indian Premier League (IPL)
The company has announced and passed on an alert to their customer of the data breach. Let’s look at the further details of the data breach.
Retail broking firm and one of the leading discount brokers of the country Upstox had alerted its customers that there has been a data breach in the company. They have told that details such as contact data and KYC details of the customers have been breached.
A spokesman of the company through an email statement had said that the hackers’ group has put the sample of the data on the Dark Web. The spokesman of the company added on saying that for now, the company is not exactly sure about the certainty of the number of customers whose data has been exposed.
It is estimated that around 25 lakhs of its customers KYC data and contact numbers have been gained access by the hackers. This incident has happened in the midst of data breaches in some of the leading domestic companies and global giants such as LinkedIn, Facebook and Mobikwik.
The company has said that they had received receipts of emails that claimed unauthorized access to their databases. In response to it, the company has appointed a leading international cyber-security firm that will investigate the possibilities of the data breach of KYC details of customers. They would investigate on the KYC data stored in third-party data warehouse systems.
The spokesman of the company has added that as a proactive measure the company has taken steps to initiate multiple security enhancements which will particularly concentrate on the third-party warehouses.
The company has also taken steps to increase real-time monitoring to 24/7 and adding an additional ring-fencing to its network said the spokesman of the company.
He added that the company has ensured to restrict the access to the databases which has impacted in the breach. The company has also added multiple security enhancements at all third-party warehouses.
Upstox has taken measures to speed up its bug bounty programme to encourage the ethical hackers to stress-test its systems and protocols. This is a step taken by the company where it makes ethical hackers to hack into their systems to understand the vulnerabilities and identify the problems in the safety of the company’s data. This activity will be undertaken from time to time in regular intervals.
The company has taken an abundant caution towards the security of the customers. The company has taken the initiative to provide a secured password reset through OTPs for all its customers. The company has said that they take the safety of customers very seriously.
The CEO of the company Ravi Kumar has said that this time the company has strongly fortified its systems to the most highest standards to ensure higher safety.
The company has always made the customers to use unique passwords that are strong. They have ensured that the customers would change their passwords in regular intervals and stressed on not to share their OTPs with anyone.
The company has said that it has also taken steps to warn the customers about the online frauds and to double-check the legitimacy of the links and senders. They have asked the customers to keep a check on the OTPs they receive and the ones they have requested.
Upstox has always asked its customers to report and alert the service providers if they notice such activities.
The spokesperson of Upstox has said that, the funds and securities of all Upstox customers are safe and have been protected by the company.
Ravi Kumar who is the CEO and Co-founder of the company has also tweeted about it saying that funds and securities of the customers are protected and kept safe by the company.
FAQ
Is Upstox funded by Ratan Tata?
Yes. Upstox is an online discount stock broker backed by funding from Mr. Ratan Tata. He held 1.33% stake in the company As of Jan 2020.
Who is owner of Upstox?
Founders of RKSV Securities (Changed to Upstox Later) are Ravi Kumar, Raghu Kumar and Shrinivas Viswanath are the owner of Upstox.
Is Upstox SEBI registered?
Yes, It is registered with the Securities & Exchange Board of India (SEBI) as a stock broker.
Conclusion
These are the steps taken by Upstox regarding their data breach.
