Hyderabad: Cyber fraudsters targeting cryptocurrency investors

Cyber security officials have warned those incorporating crypto in their investment portfolio from becoming victims to such frauds

Hyderabad: Crypto investors are opening themselves up to new and evolving risk of frauds. Cyber fraudsters who find novel ways to cheat people are now targeting cryptocurrency investors.

Cyber security officials have warned those incorporating crypto in their investment portfolio or are interested in investing in ‘Bitcoin’ or ‘Ethereum’ or other similar electronic currencies, from becoming victims to such frauds.

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Fraudsters promise higher returns each day for investing on cryptocurrencies. They also assure the investors to trade on their behalf, transfer profits into their accounts directly. Investors also have the option of withdrawing the currency, fraudsters assure. This tension-free and no-risk investment option is attracting more and more investors, cybercrime officials said.

“Those who fall in their trap and start investing in cryptocurrency are initially given good returns for a few months, which builds trust. Eventually, fraudsters block the accounts and scoot,” says a cybercrime official.

Preliminary investigations into such frauds indicated that it is the work of interstate gangs from Uttar Pradesh, Madhya Pradesh, Delhi, Mumbai and other parts of north India.

“Their easy targets are mostly youngsters, businessmen, students and IT employees, working professionals who intend to earn easy money. They contact these people through online and offline platforms including social media, phone calls, e-mails, SMSs and lure them into investing,” the official said.

Investigations also revealed that certain gangs have been maintaining closed WhatsApp groups with secret names indicating cryptocurrency investments and adding hundreds of investors from various states as participants.

“Fraudsters carry out conversations related to cryptocurrency investments in such groups to lure investors. They also share daily updates on cryptocurrency investment profit and loss. They also share templates giving out instances of investments and high returns, thus luring the members,” officials said.

Once participants fully fall into the trap, they contact them to invest in cryptocurrency, they make them download fake investment apps and invest money in it to start trading. Their access to the account mostly will be kept with the fraudsters who give fake profit updates.

Don’t fall for the trap!

* Cryptocurrency is a type of digital currency that generally only exists electronically

* You usually exchange cryptocurrency with someone online, with your phone or computer, without using an intermediary like a bank

* Bitcoin and Ethereum are well-known cryptocurrencies

* Cryptocurrency can be bought through online exchange platforms

* Some people earn them through a complex process called ‘mining’

* It is stored in a digital wallet, which can be online, on your computer or an external hard drive.

* The accounts are usually not backed by governments.

* Their values change constantly

* Cryptocurrency payments do not come with legal protections

* Cryptocurrency payments typically are not reversible