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How Castler Escrow Could Have Prevented a 12 Lakh Fraud: A Case Study

In a recent incident in Kolkata, a computer science student named Mohd Nizamuddin from Madhyamgram was arrested for involvement in a Rs 12 lakh fraud. The student allegedly hacked into an email to divert the victim’s insurance policies that had matured recently​.

In the midst of this, it is worth considering how the use of a secure escrow platform like Castler might have prevented this unfortunate scenario.

Escrow platforms are third-party entities that securely hold funds or assets during a transaction between two parties. In this case, had the victim used Castler, the funds from the matured insurance policies would have been placed in a secure escrow account, instead of being directly accessible.

The security advantage of Castler lies in its robust verification process. Before any transaction takes place, all parties involved must undergo a thorough identity verification. This reduces the risk of fraudulent activities as it makes it significantly more difficult for a fraudster to pose as the legitimate recipient of the funds.

Furthermore, the transfer of funds in the Castler platform requires the mutual agreement of both parties involved in the transaction. In the scenario of this case, even if the student had managed to hack the victim’s email, he wouldn’t have been able to divert the funds to his account without the victim’s consent.

While it is unfortunate that this fraud occurred, it serves as a reminder of the importance of secure financial transactions. The use of a secure escrow platform such as Castler can provide the protection needed to prevent such situations from arising in the future.