Crypto Scams Rise in India as Another Consulting Executive Faces Fraud

Crypto scams in India have risen significantly in the past couple of years. On Saturday, a consultancy executive was reportedly cheated in the name of crypto rewards. According to local media reports, a Gurugram-based executive has faced a fraud worth over $45,000. The heightened frauds have now raised questions on cyber security measures that are in place to protect internet users, however have failed to do so.

Gurugram-based consultancy executive faces crypto scam

According to local media reports, a woman who became friends with an executive of a consulting firm in Gurugram through a matrimonial website scammed him for over $45,000. The amount holds a huge value in the local currency. The victim was coerced into purchasing a cryptocurrency called Deuncoin and was then compelled to pay numerous more fees.

According to the report, the victim was allegedly persuaded to invest in cryptocurrencies and had created an account on the m.deuncoin.vip website. The victim also reported that they received a message on WhatsApp from the Deuncoin customer care support team. The messages stated that the amount that the preparator had transferred was considered money laundering. The threats further included facing financial action. The fake customer support then asked them to deposit a comparable amount within the next 24 hours to restore the trading account’s normal status, threatening to freeze it if they didn’t.

India grapples with rising number of crypto frauds

India has been tussling with a rise in cyber crimes in the country for quite some time now. Just previously the state of Odisha saw two crypto scams take place in a single month. Even the national capital of the country had previously suffered a similar wrath as an engineer was scammed with a considerable amount.

Local studies indicate that cryptocurrency con artists easily fool Indian investors. Most of these scams take place on the chat software Telegram. The absence of regulations, inexperienced new investors, and lack of knowledge of digital media are the main factors influencing the Indian audience to fall prey to crypto scams.

Indian government enforces strict regulations

The Indian government has begun enforcing more stringent regulations to reduce the overwhelming volume of cryptocurrency fraud. The number of victims falling victim to crypto fraud and government official impersonation has increased, according to the cybercrime police.

To combat this grieving situation the Indian government has been increasing its scrutiny over illicit crypto trading sectors. Additionally, nine offshore bitcoin exchanges previously had received a show cause notice from the Financial Intelligence Unit (FIU). The FIU sent a statement alleging that the exchanges had broken India’s anti-money laundering regulations and were “illegally operating.” The government has also added digital assets to its watch list. This means that India’s cryptocurrency exchanges are now subject to money laundering laws.