A new cryptocurrency scam in India is targeting wealthy individuals using a fake mobile app, as scammers are going to greater lengths than ever to acquire other people’s crypto.
It has been reported by India TV News that cybercriminals are targeting high-income individuals across India. Victims receive messages through social media groups asking them to sell and buy Bitcoin through a mobile app.
However, the report said that this app, which supposedly acts as a crypto exchange, is actually entirely fraudulent. Once a user’s Bitcoin is deposited on the fake exchange, the scammers stop responding to queries from the victim and disappear.
Manan Shah, the founder and CEO of Avalance Global Solutions, said that an unidentified man lost over $50,000 while dealing with one of the fake platforms. One of the most significant cases involved another unnamed Indian businessman who was scammed out of the USD equivalent of $3 million.
This crypto scam is designed to encourage wealthy people to deposit Bitcoin into a fake mobile app, reports @conexiondigicol https://t.co/XAkHmdU31Z — Cointelegraph (@Cointelegraph) August 10, 2020
Likewise, Sumit Gupta, the co-founder and CEO of local crypto exchange CoinDCX, believes that more fraudulent crypto services will appear as blockchain-based assets continue to grow in popularity throughout India.
As previously reported, Indian police have registered a case against five individuals suspected of involvement in a cryptocurrency scam that has defrauded investors since 2017.
Thus, the scammers are only believed to have made off with a modest bounty of $34,200, despite operating for several years.