A resident of Maharashtra fell victim to a cryptocurrency scam, losing INR 30,86,535 (approximately $36,763) after being tricked by scammers posing as officials. The scammers claimed that a parcel allegedly sent by the victim to Thailand contained illegal substances and forged documents, creating a sense of urgency to extort money.
The victim, a doctor from Maharashtra, was targeted by scammers who claimed to be from a legitimate organization, using fear tactics to coerce her into transferring funds. The scam transpired between August 2 and 6, with the perpetrators pressuring the victim to download a mobile application to purchase cryptocurrencies.
The scam occurred over a span of five days, from August 2 to August 6. The victim was coerced into purchasing cryptocurrencies and transferring the equivalent of $36,763 to multiple bank accounts, making it difficult for law enforcement to trace the funds.
The scammers created a scenario where the victim was falsely accused of sending a package containing illegal drugs, passports, and SIM cards to Thailand. Under pressure, the victim complied with their demands, purchasing and transferring cryptocurrency to several bank accounts. Once the transaction was completed, the scammers disappeared, leaving the victim with significant financial losses.
India has seen a rise in similar scams over the past few years. In December 2023, a cybercrime investigation in Pune revealed that over 12 victims had collectively lost more than $480,000 in similar scams. The funds obtained through these scams are often laundered through multiple bank accounts before being converted into cryptocurrencies and transferred abroad to locations such as China, Dubai, and Taiwan.
To combat such incidents, Indian regulators have tightened regulations surrounding cryptocurrency exchanges. The Financial Intelligence Unit (FIU) now requires cryptocurrency exchanges to register with the regulator, with unregistered platforms being blocked. Additionally, the Enforcement Directorate has been actively cracking down on fraudulent schemes that exploit the hype around cryptocurrencies to defraud investors.
Despite regulatory efforts, crypto-related crimes continue to rise in India, with scammers frequently leveraging the lack of a specific regulatory framework for cryptocurrencies. These crimes are currently prosecuted under existing laws, highlighting the need for more robust legislation to protect individuals from such fraudulent activities.
