Cryptocurrencies have gained immense popularity over the past few years, with more and more people or Indian Crypto Investors investing in them. However, with increased popularity comes increased risk, and the cryptocurrency industry is no exception.
In the past few years, hackers and scammers are increasingly targeting cryptocurrency investors around the world. And the Indian market is no exception. To that end, in a recent announcement, the Indian Finance Minister revealed that Indian investors have been ripped off by crypto scams worth Rs 953 crore.
Indian Finance Minister Reveals Losses Faced by Indian Crypto Investors
On March 13, the Indian Finance Minister, Nirmala Sitharaman, reveal that Indian investors have lost approximately Rs 953 crore due to crypto frauds or scams. This revelation came just days after the Finance Ministry bring crypto transactions under the purview of the PMLA.
Meanwhile, the assertions were made in the parliament in response to a query from a DMK MP in the Lok Sabha. Apart from that, Nirmala Sitharaman also mentioned that the Financial Action Task Force (FATF) has already implemented steps to combat money laundering and terror financing using cryptocurrency.
In addition to the Finance Ministry, the Reserve Bank of India (RBI) has also advised its regulated entities to conduct customer due diligence processes for crypto transactions. Meanwhile, five people have been arrested and six prosecution complaints have been filed to date. These filings were made before the special court under the Prevention of Money Laundering Act, 2002.
India's Crypto Boom Brings a Dark Side: Protect Yourself from Scammers
The growing popularity of cryptocurrency has led to an increase in scamming incidents. Fraudsters are targeting investors, crypto wallets, and exchanges resulting in the loss of hard-earned money of people.
In the past few years, India became a prime target for cryptocurrency hacks due to its large population. Not just that, but also because of its growing economy, and the increasing number of cryptocurrency investors. Cryptocurrency is not yet regulated in India, making it a prime target for scammers and hackers.
However, there are several ways for an individual to prevent becoming a victim of fraud.
Shield Yourself from Crypto Scammers with These Foolproof Measures
- Only invest in things you understand: If you're not sure about how a particular cryptocurrency works, it's advisable to take a break and do more research before deciding whether to invest or not.
- Be wary of social media adverts: Crypto scammers frequently utilize social media to promote their fraudulent schemes. They may use unauthorized images of celebrities or high-profile businessmen to create a sense of credibility.
Maintain a level of skepticism when you see cryptocurrency opportunities touted on social media, and do your due diligence.
- Only download apps from official platforms: Although fake applications can end up in the Google Play Store or the Apple App Store. Downloading apps from these sites is safer than elsewhere.
- Do your research: Cryptocurrencies are not scams. But if you've never heard of a cryptocurrency, dig into it. See if there's a whitepaper you can read, and learn who controls it and how it works. In addition, also look for authentic reviews and testimonies.
To avoid scams, look for an up-to-date and reliable fake cryptocurrency list.
- Avoid clicking malicious website URLs: Always remember that before attempting to log in, double-check the web address to ensure it is real and begins with https (not HTTP).
Apart from the above-mentioned measures, a regulatory framework can also assist individuals in avoiding such crypto frauds. Yet, India still lacks a legal framework for crypto assets, making it a potential hotspot for cryptocurrency hackers and scammers.
However, the Indian government is working quite hard on establishing a regulatory framework for digital assets. Last year, the Finance Minister noted that India will definitely establish a legal framework with international collaboration.
To that end, several media reports claim that India will put forward the plan of establishing a legal framework for crypto in the upcoming G20 meeting, as India holds the presidency of the G20 Nations this year.
Cryptocurrency scams and hacks are a growing concern in India. The recent announcement by Nirmala Sitharaman highlights the need for the government to establish a legal framework as soon as possible.
By providing a regulatory framework and increasing public awareness, the government can help prevent further cryptocurrency scams or frauds, and restore trust in the Indian cryptocurrency market.
Apart from that, investors should also be cautious when investing in cryptocurrencies and should conduct thorough research before making any investments.
To know more about how Indian Crypto Investors swindled for Rs 953 crore in scams, go check out SunCrypto Academy.