This blog will walk you through reporting cryptocurrency scams in India. We will introduce you to the key agencies and platforms where victims can seek help, ensuring that you’re ready to take quick and effective action.
While cryptocurrencies are not recognized as legal tender in India, trading and holding them is allowed, though the future remains uncertain due to potential legislation that could ban private cryptocurrencies.
The government has established a comprehensive regulatory framework that includes stringent compliance requirements for crypto businesses, such as mandatory registration and adherence to AML and KYC policies, along with a 30% tax on crypto income and a 1% TDS on large transactions. India is also actively participating in global discussions on crypto regulation and showing a positive outlook towards blockchain technology applications in various sectors.
This blog will walk you through reporting cryptocurrency scams in India. We will introduce you to the key agencies and platforms where victims can seek help, ensuring that you’re ready to take quick and effective action if a scam ever targets you.
Understanding Cryptocurrency Scams
As cryptocurrency gains popularity, so do the various scams designed to exploit it. These scams can take many forms, each with the potential to cause significant financial harm to unsuspecting investors. Below, we’ll explore some of the most common types of cryptocurrency scams in detail.
Types of Cryptocurrency Scams:
Investment Scams:
Scammers promise high returns through Ponzi schemes, fake ICOs, or fraudulent investments, luring victims with the allure of quick profits before disappearing with their money.
One of the most notorious investment scams in India involved Morris Coin, where scammers created a fake cryptocurrency and promised massive returns to investors. Once they accumulated enough investments, they vanished, leaving investors with nothing. The Enforcement Directorate (ED) of India investigated the case and found that the coin never existed, marking it as a classic Ponzi scheme.
Phishing scams:
Fraudsters create fake websites, emails, or apps that mimic legitimate platforms to steal private keys, passwords, or other sensitive information, giving them access to victims’ funds.
An Indian girl lost ₹12 lakh in a phishing scam initiated via WhatsApp. The scammer, pretending to offer a lucrative crypto investment opportunity, convinced her to transfer funds to a fake platform. After multiple transactions, she realized the platform was fraudulent and her money was gone. This case highlights the dangers of unsolicited messages and the importance of verifying investment opportunities independently.
Social Engineering Scams:
These involve impersonation, fake giveaways, or romance scams, where scammers manipulate victims into sharing private information or transferring funds under pretenses.
A software engineer from Bengaluru lost ₹1 crore in a Bitcoin scam orchestrated by a woman he met on a dating app. The woman gained his trust and convinced him to invest in cryptocurrency through a fake platform. After transferring the money, the engineer realized he had been scammed when he could no longer access his funds. The incident highlights the growing risk of online fraud, especially through dating apps.
Read more on investigating & reporting social engineering scams in this story.
Rug Pulls and Exit Scams:
Developers of fraudulent projects attract investments, then suddenly withdraw all funds or shut down, leaving investors with worthless tokens or lost funds.
A cryptocurrency scam in Himachal Pradesh has resulted in losses exceeding ₹200 crore for thousands of investors since 2018. The scam involved a series of rug pulls using various fake cryptocurrencies, including “Korvio Coin” and “DGT Coin.” The fraudsters operated a Ponzi scheme, luring investors with promises of high returns and encouraging them to recruit others. The police have arrested five individuals and are continuing their investigation to apprehend the kingpins behind the operation.
Livestream scams:
Scammers broadcast fake livestreams, often impersonating well-known figures, to promote fraudulent giveaways or investments, urging viewers to send cryptocurrency.
A deepfake scam involving a fake YouTube livestream featuring an AI-generated version of Elon Musk is being used to promote fraudulent cryptocurrency schemes. The scammers create a convincing live video to lure viewers into sending cryptocurrencies, promising high returns. Despite the video being fake, many fall victim due to its realistic appearance.
These scams exploit different vulnerabilities, making awareness and vigilance crucial to protecting your investments.
Where to Report Cryptocurrency Scams in India
If you’ve been scammed, it’s essential to report it promptly. Here are the key channels you can use:
1. National Cyber Crime Reporting Portal
The Government of India provides a dedicated platform for reporting cybercrimes, including cryptocurrency scams.
Visit the Portal: Go to the National Cyber Crime Reporting Portal.Register and File a Complaint: Sign up and provide detailed information about the scam, including transaction IDs, wallet addresses, and communication with the scammer. Attach supporting documents, like screenshots or receipts.Track Your Complaint: After submitting, you’ll receive a unique complaint ID to monitor the progress of your case online.Follow-Up: Stay informed and provide any additional information requested by authorities to aid in the investigation.
2. Indian Computer Emergency Response Team (CERT-In)
CERT-In is the national agency responsible for managing cybersecurity incidents, including those related to cryptocurrency. If you’ve experienced a significant cyber issue like large-scale fraud, hacking, or a major security breach involving cryptocurrency, CERT-In is the authority to contact.
Report an incident: Visit the CERT-In website to report the incident. Provide detailed information, including the nature of the breach, its impact, and any technical details, such as affected systems or compromised accounts.What to Include: Include all relevant details like the date, time, and nature of the incident, how it was detected, and any actions you’ve taken. If available, attach logs or technical data to aid in the investigation.Follow-Up: CERT-In may contact you for more details or offer guidance on how to address the breach. They may also coordinate with other agencies if necessary.
3. Local Police Station
If you’ve been a victim of a cryptocurrency scam, you can file a First Information Report (FIR) at your local police station.
Prepare Your Report: Gather all relevant information, including the nature of the scam, the financial loss you’ve incurred, and any evidence you’ve collected, such as transaction details, communications with the scammer, and supporting documents.Visit the station: Take your prepared report to the nearest police station and request to file an FIR. It’s important to be clear and assertive about your right to file the report, as it is your legal right.
4. Consumer Helpline
The National Consumer Helpline (NCH) assists in dealing with fraudulent financial schemes, including those involving cryptocurrencies.
File a complaint: You can report a cryptocurrency scam by visiting the National Consumer Helpline website or by calling their toll-free number at 1800–11–4000. When filing a complaint, provide all relevant details, such as the nature of the scam, the amount of financial loss, and any supporting evidence you have. The NCH can guide you on the next steps and help escalate your complaint to the appropriate authorities for further action.
5. Crypto Exchange
If you’ve been scammed on a cryptocurrency exchange, it’s important to report the incident directly to the platform.
Contact Support: Most reputable cryptocurrency exchanges have dedicated processes for handling fraud and scams. Visit the exchange’s website and contact their customer support or fraud department. Provide all relevant details, including transaction IDs, wallet addresses, and any communication with the scammer. The support team will initiate an investigation and guide you through the steps they are taking to resolve the issue. Make sure to keep all records of your communication with the exchange for future reference.
How to easily prepare information to report cryptocurrency scams in India? Are any investigators available?
To help authorities with their investigation, you must collect every relevant detail when reporting a cryptocurrency scam in India. This contains your information, a detailed account of the scam, information about the financial loss, such as transaction IDs and wallet addresses; communication proof, like emails or messages; and any supporting documentation, like contracts or screenshots. Giving this thorough information facilitates the investigation and raises the possibility of finding misplaced assets.
Yes, specialized investigators are available to help you recover from cryptocurrency scams. For those seeking expert assistance, Bitquery Investigation Services offers specialized support in tracing stolen funds and compiling detailed reports.
Recovering from a crypto fraud can be intimidating once you have fallen victim to one. Bitquery Investigation Services offers an organized approach to help you find stolen assets, and the offenders, and pursue legal action.
Consultation Stage: During the consultation stage, Bitquery’s team aims to gain a comprehensive understanding of your specific circumstances. You have to present proof of wallet ownership — such as a screenshot of your wallet address — and a complaint referral form to provide information about the scam. This detailed case analysis helps Bitquery choose the best course of action for you.
Investigation Stage: Once the consultation is complete, Bitquery’s experts move on to the investigation. They use advanced tools and techniques, such as Bitquery Moneyflow.
Moneyflow enables transaction filtering based on amounts and incorporates FATF indicators to detect potential money laundering activities. Its automatic tracing capability allows users to follow fund flows to and from specific addresses, providing valuable insights for compliance and investigative purposes.This stage is crucial for thoroughly documenting the scam, which is essential for reporting purposes and legal proceedings. The objective is to thoroughly investigate the scam and pinpoint those accountable.
Resolution Stage: During the concluding phase, Bitquery engages in legal proceedings in partnership with relevant law enforcement agencies. The company collaborates with legal experts specializing in cryptocurrency to thoroughly investigate all possible legal options at your disposal.
Bitquery’s team offers extensive experience and sophisticated tools that streamline the information-gathering process, enhance the chances of apprehending scammers, and help recover assets, making it a recommended choice for handling some aspects of the process.
Additional Steps to Take After Reporting
After reporting a cryptocurrency scam, taking additional steps can help protect your assets and support the investigation.
Preserving Evidence: It is very important to keep all records and screenshots related to the scam. Include transaction receipts, emails, chat logs, and other scammer communication. This evidence is essential for ongoing investigations, as it offers a clear record of the scammer’s actions and can be utilized by authorities or investigators such as Bitquery to trace the stolen funds and construct a robust case.
Notifying Your Bank or Financial Institution: If your financial accounts are linked to the scam, it is crucial to promptly inform your bank or financial institution, and they might be able to assist you in freezing your account, reversing unauthorized transactions, or implementing additional security measures. Taking this action is essential to shielding your assets and avoiding additional financial loss.
Monitoring and Securing Your Accounts: Keep an eye on your cryptocurrency wallets and bank accounts to see if anything strange is happening. Set up alerts for when transactions happen, and check your accounts often. Make your digital assets safer by using strong, unique passwords, two-factor authentication (2FA) on all of your accounts, and changing your passwords often. You might want to move your money to safer wallets, like hardware wallets, and stay away from storing large amounts of cryptocurrency on exchanges.
Alerting the Crypto Community: Get the word out using community channels like social media and forums. Nevertheless, be careful not to reveal any private information and instead concentrate on informing others about the tricks used in the scam and how to spot them. To warn others and prevent similar scams in the future, your story can be an effective tool.
Preventive Measures to Avoid Cryptocurrency Scams
Prevention is always better than cure when it comes to cryptocurrency scams. Taking proactive steps can help you avoid becoming a victim in the first place.
Research Before Investing: Before investing in cryptocurrencies, it’s important to do a lot of research. Check to see if the project, its team, and its business model are real. Watch out for red flags like claims of huge profits that aren’t realistic, teams that you don’t know, or a lack of openness. Look at reviews, comments from other investors, and any problems that have happened with the project in the past. Something is probably deceptive if it seems too good to be true. A detailed guide is available in this blog.
Securing Your Digital Assets: Protecting digital assets is crucial. Use secure hardware wallets to store your cryptocurrency. Protect your private keys offline and never share them. Use trustworthy exchanges with strong security. Hackers target exchanges, so avoid leaving large amounts of cryptocurrency there.
Staying Informed: As cryptocurrency evolves, so do scammers’ methods. Keep up with the latest scams, security tips, and market trends by learning more about them on a regular basis. For news and updates about cryptocurrencies, follow reputable blogs, official channels, and leaders in the field. Knowing current risks and how to mitigate them will help you stay ahead of threats.
Conclusion
Reporting the scam to national agencies and, if necessary, utilizing services such as Bitquery for comprehensive investigations are among the critical steps in combating cryptocurrency scams. Keeping all evidence secure and keeping detailed records of the scam are crucial to the success of these strategies. Additionally, it is crucial to safeguard your digital assets and remain informed about the most recent scams to prevent falling victim to them. Awareness and research are your best defenses. It’s also harder for scammers to succeed when people share this information. This makes the crypto community stronger and better informed.
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Written by Prerna
Where to report cryptocurrency scams in India? was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.