Crypto Scam: Indian State Grapples With Another Fraud Worth $1.8 Million
In the midst of the growing number of crypto scams in India, the state of Odisha is once again making headlines. Recent reports state that a gang operating in Rourkela, Odisha, has been apprehended by the police. This overseas gang is accused of carrying out frauds worth $1.6 million.
According to local media, this time the crypto network was operating from Cambodia and had been active for the past year. The gang members utilized fraudulent mobile applications to deceive consumers out of approximately $1.8 million. Their modus operandi involved cyber scams revolving around fake cryptocurrencies.
The gang would create fictitious applications and entice investors with the promise of high returns. They even developed an India SEBI app, which allowed them to attract investments from across the country and beyond. It was revealed that the gang was linked to around 210 cases of fraud across multiple states.
India has been grappling with a surge in cybercrimes, including crypto scams, for some time now. This incident marks the second crypto scam in Odisha within a month. Reports suggest that cryptocurrency con artists easily deceive Indian investors, with many of these scams occurring on popular messaging app Telegram. Factors such as the absence of regulations, inexperienced investors, and a lack of understanding of digital media contribute to the vulnerability of Indian investors.
In response to this alarming trend, the Indian government has been implementing stricter regulations to curb cryptocurrency fraud. Cybercrime police have observed a rising number of victims falling prey to crypto fraud and government impersonations. The government has intensified its scrutiny of illegal crypto trading sectors, issuing show cause notices to nine offshore bitcoin exchanges for allegedly violating anti-money laundering regulations.
Additionally, digital assets have been added to India’s watch list, subjecting cryptocurrency exchanges to money laundering laws. These measures aim to combat the prevailing situation and protect investors from falling victim to scams in the crypto space.