June 22, 2022
2 mins read

Beware of crypto scams

CloudSEK was approached by a victim who allegedly lost Rs 50 lakh ($64,000) to such a cryptocurrency scam, in addition to other costs such as deposit amount, tax, etc….reports Asian Lite News

Fake cryptocurrency exchanges have duped Indian investors of more than $128 million (nearly Rs 1,000 crore) as the global crypto market tanks, a new report claimed on Tuesday.

Cyber-security company CloudSEK said it has uncovered an ongoing operation involving several phishing domains and Android-based fake crypto applications.

“This large-scale campaign entices unwary individuals into a huge gambling scam. Many of these bogus websites impersonate “CoinEgg”, a legitimate UK-based cryptocurrency trading platform,” according to the report.

CloudSEK was approached by a victim who allegedly lost Rs 50 lakh ($64,000) to such a cryptocurrency scam, in addition to other costs such as deposit amount, tax, etc.

“We estimate that threat actors have defrauded victims of up to $128 million (about Rs 1,000 crore) via such crypto scams,” said Rahul Sasi, Founder and CEO of CloudSEK.

As investors shift their focus on the cryptocurrency markets, scammers and cheats turn their attention to them as well,’ Sasi added.

Threat actors first create fake domains that impersonate legitimate crypto trading platforms.

The sites are designed to replicate the official website’s dashboard and user experience.

The attackers then create a female profile on social media to approach the potential victim and establish a friendship.

The profile influences the victim to invest in cryptocurrency and start trading.

“The profile also shares $100-dollar credit, as a gift to a particular crypto exchange, which in this case is a duplicate of a legitimate crypto exchange,” the report mentioned.

The victim initially makes a significant profit, which bolsters their trust in the platform and the threat actor.

After the victim seemingly makes a profit, the scammer convinces them to invest a higher amount, promising better returns.

Once the victim adds their own money to the fake exchange, the threat actor freezes their account, ensuring the victim can’t withdraw their investment, and disappears with the victim’s money.

When victims take to various platforms to complain about losing access to their accounts, the same, or new, threat actors reach out to them in the guise of investigators.

“To retrieve the frozen assets, they request victims to provide confidential information such as ID cards and bank details, via email. These details are then used to perpetrate other nefarious activities,” the report warned.

In the long-term, it is imperative for the collaboration between crypto exchanges, Internet service providers (ISPs), and cyber crime cells to raise awareness and take action against threat groups,” said Sasi.

ALSO READ: Cryptos in freefall

Previous Story

India’s first Bharat Gaurav tourist train flagged off from Delhi

Next Story

E-com firms under close watch in India

Latest from Business

China Curbs Hit India’s Electronics Boom

The ICEA noted this results in delays, inefficiencies, and higher costs — alternatives from Japan or Korea cost up to four times more than Chinese machinery. India’s transformation into a global electronics

India Maps 8.52 MT Rare Earth Reserves

The Atomic Minerals Directorate for Exploration and Research (AMD) and the Geological Survey of India (GSI) are actively exploring and augmenting rare earth resources, while the GSI alone has added 482.6 million

‘India’s Digital Hub Ascends’

The event also featured discussions on the Quad Partnership for Cable Connectivity and Resilience, reiterating commitments made during the July 1 Quad Foreign Ministers’ Meeting India’s growing role as a key digital

India’s Job Market Surges

With hiring levels on the rise, compensation is expected to increase by 12-15% in metro cities and by 18-22% in emerging cities India’s festive season this year is poised to create more
Go toTop

Don't Miss

Trump Pledges US Leadership in Crypto and Bitcoin

Trump’s journey from aversion to cryptocurrency to conversion was marked

IIT-K tool to detect fraud in crypto currency transaction

ADG, Cybercrime, Subhash Chandra, emphasised on the need for cybercrime