HNI’s in India targeted by scammers in Bitcoin wallet scam

Scammers are increasingly targetting high net worth individuals in India over Bitcoin wallet scams in last few months with respect to Bitcoin trading.

By · Aug 11, 2020 . 4min read

Crypto scam India
Photo by Srikanth D on Unsplash

Scammers have been targeting high net worth individuals (HNI) in India. Ever since the Supreme Court overruled the Reserve Bank’s decision to ban crypto-related activities, crypto trading has picked up. Scammers have spotted an opportunity to exploit investors and have done so by creating fake Bitcoin wallets.

The scammers make contact with their victims through various social media groups. They get in touch and tell them about their own wallet, which they are developing and offer investors substantial discounts. Once investors transfer their Bitcoin to these wallets, they stop hearing from the scammers. In some cases, investors have lost anywhere between 3 lakh and 28 crores to these type of scams. Some believe the total amount of scam exceeds 7000 crores.

According to Manan Shah, Founder and CEO of Avalance Global Solutions, most of these transactions are happening over Swift Global Pay (SGP), Insta Global Pay (IGP) and International Global Pay wallets.

Sumit Gupta, co-founder and CEO at CoinDCX believes that these Bitcoin and crypto-related scams are likely to occur with increasing frequency. He advises people to do their due diligence before engaging with any service.

“Scammers and hackers are getting more sophisticated in their techniques. When installing apps, it is important to stick to some basic security principles, especially when virtual currencies are at stake. Do your due diligence on the app on the number of downloads, ratings on the App Store, recommendations from legitimate publications, etc. before downloading. Besides, users should keep their devices updated and use reputable mobile security solutions to identify, block, and remove threats from their devices.”

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