The case of an Indian engineer who lost $130 000 by becoming a victim of a fraudulent cryptocurrency investment program advertised through WhatsApp is notable.
The retired government employee was enticed to work with high profits and chances of an exclusive IPO. The police identified that the scam was a fake trading site, and numerous Internet communications that were aimed at making the victim trust them.
The victim reported that he was invited to a WhatsApp group, 531 DBS Stock Profit Growth Wealth Group. The administrator of the group, who posed as Professor Rajat Verma and an alleged analyst named Meena Bhatt, convinced members to install a trading application on a site. The site asserted that it offered access to block deals and IPO allotments to non-regular investors.
The scammers had to earn his confidence, and so he was permitted to withdraw a small advance of Rs. 5000 after he had invested Rs. 1 lakh. He encouraged and deposited even more money within several weeks. He did as they suggested; between November and early December, he invested in a Capital Small Finance Bank IPO and took part in a shares buyback program, and transferred around Rs. 1.28 crore in various bank accounts and UPI operations.
Attempt at withdrawal reveals scam
Issues were encountered when the victim attempted to withdraw more money from the platform. The fraudsters charged a 20% fee to facilitate withdrawal. When the engineer declined, they froze his account. Upon realizing the fraud, he reported the crime to the Cyberabad cybercrime police, who are now investigating.
The India Government has alerted that cryptocurrency fraud is increasing most in India, particularly around the time of festivals. The police had a similar situation where an artificial intelligence scientist was defrauded with the help of a platform that had been presented on a matrimonial site. The victim executed 14 transactions, some of them using an account under Shankar Sahu and RR Physiotherapy. The remaining money was turned into digital currencies and transferred to the wallets in the UK and Malaysia.
Police issue public warning
Indian police advised its citizens to be careful when making investments over the internet. They advised that they should seek advice from reputable financial advisors before making investments and report suspicious situations at once. Researchers emphasized that fraud is becoming more advanced, with fraudsters using false applications, spoofing, and claims of high returns.
Law enforcement has stepped up its regulation of crypto-related crimes, with a primary focus on educating the public. It is recommended that citizens check platforms and avoid high-pressure investment strategies that demand initial payments or commissions.
The case shows that investors are increasingly susceptible to online fraud and that greater caution is required when investing in cryptocurrencies in India.
