An India TV news report revealed that many wealthy Indian investors had fallen prey to fake crypto wallet scams in the recent past.
As per the report, cyber-criminals targeted high-income crypto traders and entities across India by sending them messages on various social media groups.
The con artists then asked these unsuspecting victims to sell and buy bitcoin via fake blockchain-based wallets that offer handsome discounts on trades.
Once the scammers tricked victims into fraudulent trade agreements, they then disappeared completely. They used on popular apps such as Swift Global Pay (SGP) and International Global Pay wallets
The recent crypto scams prompted Manan Shah, CEO of Avalance Global Solutions, to comment:
“One gentleman just came to me who lost $50,000 (over Rs 37 lakh) while dealing with one such fake platform.”
These unfortunate scams couldn’t have come at a worse time for the Indian crypto market, which currently finds itself in the grips of a possible crypto ban.
We recently reported that government authorities in the country are working on new regulations to ban crypto, citing their involvement in criminal activities.
Crypto Scams Explode in 2020
The recent scams in India highlight a growing trend where bad actors worldwide are ramping up efforts to rob crypto investors.
It seems that the ongoing bullish run in the crypto sector, along with the Covid-19 induced global lockdowns that have forced most folks to work online, is fostering an explosion of digital currency payment frauds.
On June 3, crypto intelligence startup, CipherTrace, released a report that revealed the gravity of criminal activity in the crypto sphere.
As per data from the company, crypto thefts, hacks, and frauds resulted in losses amounting to $1.4 billion in the first five months of 2020.
Unfortunately, India’s crypto sector seems to be suffering the brunt of such crypto scams. Last month, hackers infiltrated a popular YouTube channel and streamed two fake Bitcoin giveaway promotional videos.
Those fake “BTC giveaways” came just weeks before crypto monitoring site Whale Alert exposed numerous crypto scams on YouTube that deploy similar tactics.
Indian Crypto Enthusiasts Urged To Verify Trading Apps
According to Sumit Gupta, CEO of Indian-based exchange CoinDCX, scams linked to digital payments will likely rise as cryptocurrencies grow in popularity.
His advice to the Indian crypto community is only to trust crypto-related apps that are linked from official websites.
Gupta also emphasized the need to avoid keying in sensitive info such as passwords and account specifics into online forms unless they are sure of their legitimacy.