Author: Jagdish Kumar, India
With the increase of Bitcoin boom in India since October 2017, many cases are reported on involving cryptocurrencies with a new ecosystem.
Started from phishing and hacking Bitcoin wallets attacks, after the January boom, new techniques were used to lure people interested in crytocurrencies that included multi-level marketing and fake new coins have been launched in return of investment.
One of the biggest case of crypto fraud was reported in the recent time was of the $300 million scam that also invlved many high profile individuals from Indian film celebrities to businessman.
Speaking on this, head of a virtual currency exchange said that wherever there is money, there will be scams and there is nothing surprising about that.
However, that doesn’t mean that you blame the whole system. There are many who just want to make quick money and click on unverified links as well as join random money-making schemes.
Another reason for increasing fraud is that India’s digital currency ecosystem is currently unregulated. Therefore, investors don’t have a grievance redressal authority to approach during distress.
Apart from unverified links, fake apps and social media accounts have also been launched very similar to actual account.
Once such case was happened when the users on Zebpay, India’s leading crypto currency exchange received messages asking them to deposit a certain amount of money as part of a survey in exchange for Bitcoins. However, when the users approached the company that said that they have never send such emails.
Ponzi schemes too have increased, few cases reported were of GainBitcoin, which was offering 10% per month, another was MoneyTradeCoin which was offering 20% per month returns. Wowcoin was also offering huge returns.
These all coins were taking money from investors and investing them in Bitcoin, as it was trading at around $2710 per Bitcoin during July 2017, which touched $18,000 December 2017 per Bitcoin.
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