Decoded: How call centre steals data of 10,000 people, sells fake insurance

Have you ever received a call offering a loan or insurance policy from an unknown number? Chances are, it was from a scammer trying to trick you into sharing your banking and personal details or persuade you to pay an upfront fee. This is precisely what a gang in Noida did, defrauding hundreds of people in a multi-crore loan scam. On Friday, Noida police arrested eleven individuals, including nine women, who were selling fake insurance policies and loans.

Modus operandi

The masterminds behind the scam, Ashish and Jitendra, had previously worked with SBI Life Insurance in 2019. They left the insurer a year ago and set up a call centre in Noida's Sector 51 market. They hired nine women to act as call centre executives, calling people to sell them fake policies. 

 

The gang obtained data on about 10,000 people from India Mart for Rs 2,500 and acquired SIM cards using fake Aadhaar cards bought illegally. These SIM cards helped them conceal their identities while targeting unsuspecting victims. Their operation was commission-based – the more people they deceived, the more money they earned. They targeted people outside Delhi-NCR, promising high returns on loans and insurance policies.

The money from the victims was deposited into a Punjab National Bank (PNB) account rented for Rs 10,000 a month from a man named Arvind in Karnataka. Ashish and Jitendra then used debit cards to withdraw the money in Noida.

How did the scam come to light?

During a raid, Noida police found a black diary used by Ashish. The diary detailed every financial transaction in the year-long scam, which generated crores of rupees.

What are insurance fraud calls?

Insurance fraud calls involve scammers impersonating insurance agents, seeking personal information or payments for bogus insurance policies. These tactics exploit trust and fear to manipulate individuals into compromising their security.

Instances of call centre scams

The Noida call centre is just one of thousands perpetuating telefraud on millions of people daily in India, the United States, Britain, and elsewhere. Employees pose as tax officials, bank workers, insurance agents, and tech support. Police have raided hundreds of such centres in Ahmedabad, Delhi, Gurugram, Mumbai, and Kolkata in recent years, charging thousands with fraud.

Just two days ago, Gurugram cyber crime police busted a fake call centre in Sector 49, arresting 17 people, including 15 women. These fraudsters were duping people by offering jobs and loans in the name of a finance company, using fake SIM cards and bank accounts.

"They received a salary of Rs 10,000-20,000 and a 2 per cent commission of the cheated amount for committing fraud," said Gurugram police. The fraudsters had been operating the call centre for the last six months, committing fraud amounting to about Rs 12 lakh to Rs 14 lakh every month.

Possible reasons behind the rise in scams in India

"India is the world’s most populous country and has one of the youngest populations, with more than 40% under 25 years old. However, the pace of economic growth is not enough to accommodate the 12 million people joining the workforce each year. As a result, educated youth – once considered a demographic dividend – are forced to turn to the gig economy, scam call centres, online micro-work, and other low-paid jobs," analysts told Reuters in a report last year.

"We are at a critical moment,” said Amit Basole at the Azim Premji University Centre for Sustainable Employment, pointing to high unemployment rates among educated youth, low labour force participation of women, and “forced self-employment” due to a lack of productive jobs.

How to protect yourself from such frauds

To protect yourself from scams, you need to be vigilant:

Up-front cost demands: Legitimate lenders India do not require borrowers to pay fees upfront before processing a loan. “If a lender asks for payment for processing fees, insurance, or any other charges before approving the loan, it's likely a scam”, according to Aditya Birla Finance.

Guaranteed loan approval: Be wary of lenders who guarantee loan approval regardless of your credit history or financial situation. Legitimate lenders assess applicants based on their creditworthiness, income, employment history, and other factors before approving a loan.

Online phishing: Always ensure you interact with legitimate and secure websites when applying for a loan to avoid phishing scams.

Time-bound offers: Scammers often use time-bound offers to create a sense of urgency and pressure individuals into making hasty decisions. Take your time to thoroughly research the lender and review the terms and conditions before proceeding.

Unsolicited communication: Unsolicited e calls, emails, or messages offering personal loans should raise red flags. Legitimate lenders typically do not reach out to individuals unsolicited.