Introduction
In recent years, cryptocurrencies have grown in popularity, bringing both seasoned investors and beginners to the market. However, like with any investment opportunity, there will always be people attempting to take advantage of others. A group engaging in crypto investment fraud was detained recently for targeting a handicapped individual, according to a recent occurrence. This blog article digs into the case’s facts, emphasising the risks of fraudulent schemes and the significance of remaining watchful in cryptocurrencies.
The Rise of crypto fraud
With the increased interest in digital currencies has come an increase in cryptocurrency fraud. Fraudsters use a variety of techniques to defraud unwary clients, offering large profits and instant wealth. Individuals with disabilities, unfortunately, are frequently perfect targets for such scams owing to their fragility and probable financial restrictions.
The Breakthrough
The Special Task Force (STF) The Uttarakhand Cybercrime Unit caught a group involved in a fraudulent scam that targeted a handicapped person. The group defrauded the victim of Rs 13 lakhs while posing as an online Bitcoin trader. This crime came to light after the victim, Vikram Kumar Padala, who is deaf, filed a complaint with the authorities. According to the lawsuit, the offenders pretended to be Flipkart managers and tricked the victim into liking and subscribing to numerous YouTube channels.
The Investigation
In the complaint, the victim stated that fraudsters tempted him with promises of large earnings from online bitcoin trading. To carry out their devious strategy, the scammers connected the victim to a Telegram channel and offered links to several websites, asking them to invest and do specific tasks. The victim unknowingly became a target of a criminal plot by falling into their trap. During the inquiry, it was discovered that the victim had been duped out of Rs 13 lakh in total. Further investigations revealed that the group has been conducting similar fraudulent activities throughout various Indian states, causing significant financial losses to several victims.
During the investigation, it was revealed that the funds had been transferred to Delhi and Jaipur, leading the team to send police to Delhi. Consequently, one of the gang’s members was captured in Sangam Vihar, North Delhi.
What has been recovered?
The investigation led to the identification of a bogus firm called IQ Service & Solution Pvt. Ltd, which had enabled transactions worth about Rs 5 crores. Mohammad Iqbal, 37, of Sangam Vihar, was arrested and found in possession of seven debit and credit cards, a mobile phone with two SIM cards, and various identification documents, including an Aadhaar card, a voter ID card, a driving license, and a Delhi Civil Defence Corp identity card.
Fraudsters’ Tricks
STF has shared some of the common tricks used by
Scammers utilise social engineering tactics to control and deceive folks. They may masquerade as powerful persons or crypto specialists, persuading victims to invest in fraudulent schemes or give sensitive information.
Fraudsters construct bogus airdrops and giveaways to entice people to submit their Bitcoin holdings in exchange for more. However, after the monies are sent, the fraudsters vanish, leaving victims empty-handed.
Kinds of crypto Fraud
- Phishing and Scam Websites: Fraudsters develop bogus websites and platforms that look just like actual Bitcoin exchanges or wallets. They dupe consumers into revealing login credentials or private keys, allowing criminals to obtain unauthorised access to their cash.
- Ponzi and Pyramid Schemes: These deceptive schemes offer huge and speedy returns to investors in exchange for recruiting new members. However, the gains are frequently paid out using cash from new investors, resulting in a cycle that finally crashes, leaving most participants with significant losses.
- Initial Coin Offering (ICO) Scams: ICO scams involve fraudulent enterprises or tokens that promise revolutionary technologies or services but have no intention of delivering. Investors acquire these tokens during the ICO process, only to discover later that the enterprise was a fraud, resulting in severe financial losses.
- Pump and Dump Schemes: In pump and dump schemes, fraudsters artificially boost the price of a low-value cryptocurrency by disseminating misinformation or fake information. When the price hits a peak, they sell their shares, causing the price to drop and leaving other investors with significant losses.
STF has Issued Some Guidelines
Let’s Have a look at the guidelines issued by the STF for the safety of citizens against cybercrime and cyber criminals. Some of the points for consideration are ;
- Education and research: Gain a thorough grasp of cryptocurrencies, blockchain technology, and the hazards connected with the cryptocurrency market. Before investing in any project, platform, or token, do extensive research.
- Secure Storage: Keep your cryptocurrency in secure wallets that use strong encryption and two-factor authentication. Avoid storing big sums of cryptocurrency on exchanges, as they are more vulnerable to hacks.
- Check the authenticity: Before interacting with a platform, exchange, or initiative, check its authenticity. Look for regulatory compliance, customer feedback, and recommendations from reliable sources.
- Personal Information Should Be Handled With Care: Never disclose your private keys, passwords, or sensitive personal information to anybody. Unsolicited texts or emails from legitimate organisations or platforms would never request this information.
- Stay Informed and Trustworthy Sources: Stay up to speed on the newest news, trends, and security practices in the Bitcoin field. Rely on credible sources like official project websites, industry journals, and trustworthy crypto forums.
Conclusion
The emergence of cryptocurrency fraud is a disturbing trend that offers considerable hazards to investors. As the crypto market evolves, users must be aware, exercise caution, and follow the best security practices. Investors may reduce risks and help the establishment of a safer and more trustworthy crypto ecosystem by knowing the many forms of bitcoin fraud and taking proactive efforts to protect themselves.
References: https://www.the420.in/crypto-investment-fraud-gang-targeting-disabled-person-busted/
Authors: Tanushree Saxena, Cyber trainer, Policy, and Advocacy
