Cryptocurrency Scam Targets Retired Engineer in India
In India, a retired engineer recently became the target of a sophisticated cryptocurrency scam that has resulted in a staggering loss of approximately Rs. 1.28 crore, equivalent to around $133,000. The fraud unfolded through WhatsApp, where the victim was introduced to a deceptive trading platform.
The Scam Unfolds
The ordeal began when he was added to a group on the messaging app named “531 DBS Stock Profit Growth Wealth Group”. Within this group, individuals posing as financial advisors, including one identifying himself as Professor Rajat Verma and another as Analyst Meena Bhatt, established credibility and manipulated the victim’s trust. They urged him to download a mobile application via a specific link, promising him exclusive access to lucrative investment opportunities, including private stock deals and priority allotments for Initial Public Offerings (IPOs).
Building Trust and Increasing Investments
Initially cautious, the engineer deposited Rs. 1 lakh, and, to reinforce the illusion of legitimacy, the fraudsters permitted him to withdraw Rs. 5,000 without incident. This successful withdrawal ultimately led him to believe in the authenticity of the platform, prompting him to invest progressively larger sums. Over the span of several weeks, ultimately from November to early December, he was coerced into making considerable deposits, which he believed were for the Capital Small Finance Bank IPO subscriptions and share buyback initiatives. Overall, he transferred about Rs. 1.2 crore through various banking methods, including UPI transactions.
Realization and Reporting the Fraud
The scam’s façade began to crumble when the engineer sought to retrieve his earnings. The scammers insisted on a 20% commission as a prerequisite for processing withdrawal requests. When he resisted this requirement, they promptly froze access to his account, leading him to realize he had fallen victim to a scam. He subsequently lodged a complaint with the Cyberabad cybercrime police, who are now actively investigating the fraud.
Rising Concerns Over Cryptocurrency Scams
Indian law enforcement has observed a troubling rise in cryptocurrency-related scams across the nation, with authorities stepping up efforts to confront these increasingly sophisticated crimes. In a similar recent incident, an artificial intelligence researcher was misled by a woman he met online at a matrimonial site, resulting in significant financial losses through a crypto investment scheme that spanned 14 transactions.
The police are intensifying their warnings about the escalation of investment scams, particularly as the festive season approaches and consumers are more susceptible to making rash financial decisions. With investment schemes becoming more elaborate, the authorities emphasize the importance of vigilance among potential investors to protect themselves from such criminal activities.
