A Thane-based 42-year-old man was reported to have lost 27 lakh after being a victim of a cryptocurrency investment scam that was offering unusually high returns. The victim is employed in a privately owned firm, and he was enticed by a man purporting to be an agent of a renowned global cryptocurrency trading company.
The police said that the accused persuaded the victim to open a digital trading account that would make a 30 per cent profit in a few weeks. The man sent money in various instalments in May to August this year, believing the promise. As soon as he attempted to withdraw the profits presented on the platform, the account was blocked, and the so-called representative disappeared.
The victim then went to the cyber cell when he found out that the trading site was unreal and that his money had been transferred to foreign accounts. The case has been registered in provisions of the Indian Penal Code as well as the Information Technology Act.
The Increasing Red Flag of Scam Frauds in India
The number of cryptocurrency-related frauds has increased over the past years as more Indians venture in digital assets as investments. The absence of regulation and the general awareness of crypto trading are one of the reasons that fraudsters use to their advantage. They also establish their false platforms, offer irrelevant returns or employ social media to attract investors into schemes of assured profits.
The scammers in most situations build credibility using advanced websites and fake dashboards and fool even those who are financially sensitive. Police stakeholders have been advising investors to be very careful and ensure that the entity they are trading with is legitimate before they invest.
India: How to Prevent Crypto Scams in India
- Check the Platform: This should always be done to determine whether the exchange is registered or possesses a good global presence.
- Avoid Ponzi Scheme: An offer of 20-50% every month is self-explanatory.
- Trade through Trusted Mediators: Trade only on known and trusted platforms.
- Do Not Share Private Keys: Do not share the wallet credentials or OTPs with anyone.
- Report Suspicious Activity: Report to Cyber Crime Helpline. Immediately contact the National Cyber Crime Reporting Portal or the Cyber Crime Helpline (1930) to report any fraud.
The investors must be on guard as India keeps defining its regulatory approach towards digital assets. The allure of financial gain may quite frequently obscure the pitfall of online fraud, a point that is reinforced in the financial industry, that when something sounds too good to be true, it most likely is.
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