Trick 3- Too-Good-To-Be-True Offers
- Fraudsters attract victims by offering products at unrealistically low prices.
- The scam generates huge pre-orders, but no product is actually delivered.
- Often, fake promises are made about new technology or revolutionary pricing.
- Example: Freedom 251 Scam – ₹251 smartphone scheme that never delivered.
3. Freedom 251 Smartphone Scam (2016)
Steps of the Fraud:
- Announcement of Ultra-Low-Cost Smartphone: Ringing Bells Pvt. Ltd. announced the “Freedom 251” smartphone, priced at an unprecedented ₹251, claiming it to be the world’s cheapest smartphone.
- Massive Pre-Orders: The announcement garnered significant attention, leading to a surge in pre-orders from consumers eager to acquire the low-cost device.
- Failure to Deliver: The company failed to deliver the smartphones to the majority of customers, raising suspicions about the legitimacy of the offer.
- Legal Actions: Investigations revealed that the scheme was fraudulent, leading to the arrest of the company’s founder, Mohit Goel, on allegations of fraud.
Public Outcry: The incident attracted widespread media coverage and public criticism, highlighting the need for caution in too-good-to-be-true offers.