Indians in the US, many of them under 30, are being drawn into a "free money" scheme through community WhatsApp groups, Telangana Today and Mana Telangana report. Recently laid-off workers and people trying to build dollar savings before an uncertain return to India are the main targets. Approaches have been reported mostly in Virginia and Texas.
How it works
- The sender transfers money from the US to a bank account in India.
- Weeks later (about 50 days, per Mana Telangana) the sender tells the US bank the transfer was unauthorised.
- The bank refunds the dollars, while the rupees stay in the Indian account.
- Organisers take a cut of up to 30%.
The risk
US bank fraud carries up to 30 years in prison and fines of up to $1 million. In India, parents or relatives who receive the money can be booked for cheating under Section 318(4) of the BNS, a non-bailable offence, and their accounts can be frozen.
"Every digital transfer leaves a trail," warned Nagarjuna Malempati, founder and CEO of Seattle-based fintech Xpat Money, which serves over one lakh NRIs. He urged parents to talk to their children. Unexplained money in an account should be reported to the bank, the 1930 cybercrime helpline or cybercrime.gov.in. The reports do not name any agency investigating the scheme.
