‘Aur banda gayab’: Divyanka Tripathi Dahiya on losing ₹12 lakh to trusted CA; how to protect yourself from getting scammed

She continued, “Toh woh aate the doosre sheher se. Ab unhone mere se banwaye kuch FD (fixed deposit), unhone kaha ki madam aap toh kharcha hi nahi kar rahe ho toh aapka tax ka kya hoga? Chaar cheques maine sign kiye the ek bank ke naam pe. Upar unhone merese kuch forms bharwaye… upar mera hi naam hai aur bank ka naam hai. So he said, ‘Baaki main bhar dunga madam… aap chinta mat karo.’ Sign kiya aur apna naam bhara 2-3 jagah… aur banda gayab. 12 lakh rupees the.” 

This highlights the importance of financial literacy and doing background checks on those who are handling people’s finances. 

Key red flags individuals should watch for when hiring a chartered accountant to handle their finances

Snehaishsh Das, quant finance expert, tells indianexpress.com, “Hiring a Chartered Accountant (CA) is a critical decision, as they gain access to sensitive financial details.”

According to Das, here are some red flags to look out for:

Lack of Proper Certification: Always verify whether the CA is registered with the Institute of Chartered Accountants of India (ICAI), as this is a mandatory qualification.

Unclear Communication: If the CA avoids answering direct questions about their credentials, fees, or processes, it could indicate dishonesty or incompetence.

Reluctance to Provide References: A trustworthy CA should have no issues sharing references from past or current clients.

Pressure to Sign Blank Documents: Asking clients to sign blank cheques, invoices, or forms is a major red flag. Always review documents thoroughly before signing.

Unreasonably Low Fees: While affordability is important, extremely low fees may indicate inexperience or unethical practices.

History of Complaints: Look for online reviews, disciplinary actions, or complaints filed with ICAI (Institute of Chartered Accountants of India) to spot potential issues.

Protecting oneself from falling prey to scams while managing taxes or investing in financial instruments

Preventing scams requires vigilance, education, and secure financial practices. Always review documents carefully before signing, avoid blank cheques or forms, and ensure transactions are conducted through verified platforms, stresses Das. Limit an advisor’s access to funds without explicit consent and monitor your bank transactions for unusual activity. 

Be cautious of schemes promising unrealistically high returns and maintain a healthy skepticism. Regularly review financial statements to catch irregularities early. Finally, invest in financial literacy to understand tax regulations, investment options, and common scam tactics, empowering yourself to make informed decisions.

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