In recent times, India has been faced with quite a number of daunting financial challenges. Most popular among them is an indifferent central bank and an oppressed cryptocurrency. Although these problems that faced by India are enough to cause India some real financial woes, there has been a new problem - cryptocurrency related crimes. The rise in cryptocurrency crimes in India is as a result of India’s Bitcoin boom and it does not seem to be going away any time soon
Since the Bitcoin Boom in India, there have been a couple of crimes that concern digital currencies. These series of crimes began with and only included phishing and hacking. However, in very recent times, these crimes now include multi-level marketing and Ponzi schemes.
Hacking and Phishing
This financial crime is one that makes use of some very old tricks. It usually involves sending an email from an address that appears to be real. Through this mail, investors are asked to select a link and put in personal details. Although these links appear to be absolutely harmless, they are known to come with malware. As soon as they get clicked, the investor's system gets affected and their data cloned. This leads to investors losing their funds. Sometimes, this occurrence involves a seizure of vital files in a system until a ransom is paid in digital currencies.
Counterfeit Apps and Social Media Accounts
The use of fake websites as well as fake Twitter handles to dupe unsuspecting investors is now a common occurrence in India’s cryptocurrency ecosystem. One real-life scenario of this fake twitter accounts being used in fraud involved some users of a cryptocurrency exchange in India, Zebpay. This scenario involved users of Zebpay being asked for some money for a survey in a swap for Bitcoins. Although this message was discovered to be from a counterfeit Twitter account, this Twitter account was actually much related to Zebpay’s Twitter account
Ponzi Schemes
Ponzi schemes are perhaps one of the most popular cryptocurrency related crime to hit India since the invention of Cryptocurrency. Two of India’s biggest cryptocurrency companies that have been allegedly involved in Ponzi schemes include OneCoin and GainBitcoin.
According to Pramod Emjay, a blockchain consultant, any investment that promises to get you rich at the snap of fingers is most likely too good to be true. You, therefore, will be doing yourself great disservice by investing in such.
Who is at Fault for These Crimes
As it stands, there are really no bodies or agencies known to regulate cryptocurrency in India. This implies that when bad investments occur, investors have no authority to report their grievances to anyone. Some cryptocurrency firms in India have come out to say that neither the financial system in India nor the cryptocurrency firms are to be held accountable for these many financial crimes. According to them, the investors that are looking to make quick money are to be blamed for the series of financial crimes.
The Indian Bitcoin Boom
The Bitcoin boom in India has attracted investors like never before. As a matter of fact, conservative investors are not left out of the craze for Bitcoin in India. Although this Bitcoin boom is considered to be a good omen, however, just like other systems with lots of money, the Indian cryptocurrency ecosystem has attracted lots of fraudsters and appears to be causing more harm than good to India’s financial sector.
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