Free Smartphone Scam Costs Bengaluru Man ₹2.8 Crore: How Scammers Exploited Technology

In a shocking case of cyber fraud, a 60-year-old man from Bengaluru lost ₹2.8 crore after falling victim to a cleverly orchestrated scam involving a free smartphone and SIM card. The scammers lured the victim by posing as bank representatives and manipulated him into unknowingly handing over access to his bank account.

The Elaborate Scam

The incident began in November 2024, when the victim received a WhatsApp call from an individual claiming to represent Citibank. The scammer informed the man that a credit card had been issued in his name. However, to activate and use the card, he would need to change his registered mobile number to one authorized by Airtel. To facilitate this, the scammer promised to send him a free smartphone and a new SIM card.

Believing the offer to be legitimate—given the prevalence of such calls from banks about credit card schemes—the victim agreed. On December 1, he received a Redmi smartphone worth ₹10,000 along with a SIM card. Following the instructions provided over the phone, the victim set up the new device and switched to the new SIM card.

The Financial Devastation

As soon as the victim activated the phone and SIM, his nightmare began. Shortly after the setup, he noticed an unauthorized transaction alert, indicating that a significant sum had been debited from his bank account. Upon contacting his bank, he was devastated to learn that a total of ₹2.8 crore had been siphoned off.

Realizing the magnitude of the fraud, the victim promptly filed a police complaint. He recounted to authorities, "I switched my SIM card to the mobile phone they had sent. After that, I didn’t receive any notifications from my bank.”

How the Scam Worked

Investigators suspect that the smartphone provided by the scammers was preloaded with malware. Once the victim set up the device and entered sensitive banking information, the malware likely transmitted his details to the fraudsters. This enabled them to access and empty his account seamlessly.

The use of a pre-configured smartphone is a new and sophisticated tactic in cyber fraud, highlighting the increasing ingenuity of scammers.

Staying Safe from Similar Scams

This alarming case underscores the importance of staying vigilant in the digital age. Here are some key precautions to avoid falling victim to such scams:

1. Beware of Unsolicited Offers: Banks and legitimate organizations do not send free phones or SIM cards to customers. Be cautious of any unsolicited offers.
2. Verify the Caller’s Identity: Always verify the identity of the caller, especially if they claim to represent a bank or telecom company.
3. Avoid Sharing Sensitive Information: Never share personal or financial details over calls, WhatsApp, or any other messaging platforms.
4. Report Suspicious Activity: If you receive such calls or suspect fraudulent activity, immediately report the incident to the police and your bank.
5. Inspect Devices Carefully: Avoid using devices or SIM cards sent by unknown individuals. These may be preloaded with malware.

Cyber Safety Awareness

This case serves as a wake-up call for individuals to be more cautious about unsolicited offers and calls. Scammers are constantly devising new tactics to exploit vulnerabilities. Always remember: if something seems too good to be true, it probably is.

Authorities are investigating the case, and efforts are underway to track down the fraudsters. Meanwhile, the public is urged to stay informed and take proactive measures to protect themselves from such sophisticated scams.