Would you danger sliding victim to cryptocurrency fraud by sending your digital assets to a trader you doย not know? 1 Indian businessman did, and now he is out the equivalent of a quarter of a Million dollars. The Times of India calls it one of the largest cyber frauds in Telangana, a state home to 38 Million people.
An Indian businessman lost two crore ( approximately $242,000) in just two months owingย to a fraudulent scheme on social media. Reportsย by a Times of India report on Thursday, the scammers lured him with promises of high returns and convinced him to invest in their fake cryptocurrency trading platforms. The Times of India identified the victim only by a pseudonym.
The victim came across an ad for Bitcoinย (BTC) trading while browsing Facebook on March 6, the newspaper informed. The link redirected him to a WhatsApp chat page with a Bitcoinย (BTC) website link and instructions to register.
Victim Used Binanceย Cryptoย exchange, Then Handed Assets Over
Nonetheless, in a strange twist, the victim states he downloaded the Binanceย Cryptoย exchange application to buy USDT, a cryptoย stablecoin. Only then did he send the digitalย currency to the fraudsters.ย
Thisย implies the individual navigated the interface of the worldโs most trending cryptocurrency exchanges, which can be notoriously complex for first-time users, and only then handed his assets over.
The unnamed individual reportedly had access to a โvirtual walletโ where he could see his financing growing exponentially. Nonetheless, the fraudsters insisted on more assets for full withdrawal. Then, when he refused, they shut down the virtual wallet and fake website. The businessman had reportedly taken out loans from banks, friends, and business associates toย finance his investments. He had hoped to make 10 crore ($123 million) quickly.
The Times of India has stated the felony as one of the largest cyber frauds to hit the city of Telangana. Thatโs saying something, in a state with 38 Million residents.
A Similar Cryptocurrency Fraud Took $1.5 Million
What is remarkable about the felony is how avoidable it was. Numerous crimes in cryptocurrency are the result of cryptocurrency illiteracy. Despiteย theย fact, this does not seemย to be the case in this instance.ย
Reportsย by CryptoLiteracy.org, only 9 percent of Americans achieved a passing grade on its Cryptocurrency Literacy Test. This an astounding figure when you consider that most arriving at that test must already be familiar with cryptocurrency. Despiteย theย fact, India sits near the top (4th) in terms of grassroots cryptocurrency adoption, so the figure would conceivably be higher.
Nonetheless, a recent World Bank report has flagged that 7 countries, including India, house half of the worldโs 1.4 Billion adults without access to formal banking. So cryptocurrency fraud isnโt the only concern. Banks aroundย theย globe are likewise pushing increasingly digital services onto their customers. It raises the question: if an educated businessman can fall for a WhatsApp-based scam, how safe is everyone else?
It isnโt known whether the victim was offered a brokerage service, where cryptocurrency is purchased and invested on an individualโs behalf.
Another individual informed losing 12.3 lahk ($1.5 million) in a similar fraud the day before the 1st victim approached the police. โWe have written to the cryptocurrency exchange company to get details. Onย theย otherย hand, it is closeย to impossible to identify the receiver and recover the amount lost in financing frauds,โ a police official informed The Times of India.
