53% of Citizens Face Financial Scams in Last 5 Years, MSME Ministry Issues Urgent Warning

Financial frauds and scams have increasingly become a significant threat, targeting both individual consumers and businesses. Whether it’s fulfilling a basic necessity or indulging in a luxury, fraudsters leave no stone unturned in exploiting opportunities. According to a report by LocalCircle, a social media community platform in India focused on policy changes for citizens and MSMEs, an alarming 53% of citizens reported experiencing some form of financial scam in the last five years.

For MSME businesses, these scams often appear as fraudulent messages or calls. One common scam involves a text message claiming approval of an MSME business loan under the Mudra Yojana scheme. Clicking on the link in the message can grant scammers access to sensitive financial information, putting businesses at serious risk.

Another form of scam comes through phone calls offering quick, easy loans at attractive interest rates. Once the business owner agrees, the scammer demands an upfront payment to begin the loan process. As soon as the payment is made, both the loan and the scammer disappear, leaving the business at a loss.

In response to this growing threat, the Ministry of MSME has issued an urgent warning to MSME business owners to remain vigilant and avoid falling prey to these frauds. The ministry has made it clear that it does not contact individual beneficiaries directly for any MSME credit schemes. Legitimate communication for loans or funding opportunities is always done through authorized banks or financial institutions. Business owners seeking loans are advised to reach out to their nearest Scheduled Commercial Bank for assistance.

Staying informed and cautious can help MSMEs protect their businesses from such scams and financial frauds.

Disclaimer: The information provided in this article is based on news updates and reports gathered from various internet sources. While every effort has been made to ensure the accuracy and reliability of the information, we encourage readers to verify the details independently before making any decisions.