Crypto Scams on the Rise in India: Experts Discuss Security Essentials for Crypto Investors
Crypto scams are becoming increasingly common in India, affecting both urban and rural populations. A recent report by bug bounty platform Immunefi highlights a significant increase in crypto scams during Q3 2023, indicating a worrying trend. The rise can be attributed, in part, to the Mixin hack on September 25, where attackers stole nearly $200 million. Furthermore, another report reveals that over 10 crore Indians have fallen victim to the top 15 pump-and-dump Ponzi schemes in the last three decades, resulting in an average loss of approximately 15.3 lakh per victim.
Despite these risks, India remains the second-largest crypto market worldwide. However, Dilip Chenoy, Chairman of Bharat Web3 Association, and Edul Patel, Co-founder and CEO of Mudrex, address the vulnerability of the average Indian crypto investor during a webinar titled ‘Security Essentials for Crypto Investors’. Moderated by Miloni Bhatt from economictimes.com, the experts stress the importance of awareness, responsible investment practices, and thorough research to avoid scams.
The Need for Awareness and Responsible Investment
Dilip Chenoy emphasizes that fraud is more prevalent in traditional online financial services compared to the crypto space. He urges investors to be aware of potential scams and stresses the importance of responsible investing and conducting thorough research before making any investment decisions. Chenoy also addresses concerns about the perceived lack of regulation in the crypto market.
Scams as a Result of Greed
Edul Patel argues that scams are not exclusive to cryptocurrencies but rather stem from human greed throughout history. He believes that regulations provide a framework that enhances credibility and investor protection, reducing the likelihood of falling victim to fraudulent schemes.
Preventing Common Scams
The experts discuss red flags in crypto investments and ways to prevent common scams such as pump-and-dump schemes, phishing attacks, and giveaway schemes. They emphasize the importance of staying well-informed and vigilant to safeguard assets against the tactics employed by scammers.
Hot Take: Safeguarding Your Crypto Investments
As crypto scams continue to rise in India, it is crucial for investors to prioritize awareness, responsible investment practices, and thorough research. Dilip Chenoy and Edul Patel emphasize the need for caution and highlight the potential risks associated with the lack of a dedicated regulator in the crypto market. By staying informed and adopting preventive measures, investors can protect their assets from fraudulent schemes. Remember to be vigilant for red flags and suspicious activities, such as pump-and-dump schemes or phishing attacks. By following these security essentials, you can navigate the crypto market with confidence.
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