Fake crypto exchange scams have reportedly stolen $128M from Indian investors

According to a news article, Indian investors may have lost INR 1,000 crore ($128 million) to scam crypto exchange platforms due to their ignorance of secure investments in digital assets. Fraudulent elements are focusing on this new asset class to identify their victims as investors turn their attention to cryptocurrencies more and more.

Security company CloudSEK had done research recently, which discovered the fraud when a person reported a loss of INR 50 lakh ($64,000) to this type of crypto scam.

This scam type uses fake crypto exchanges

CloudSEK conducted an investigation in which it found that several phishing domains and fake crypto apps are being used to scam innocent and less-aware investors. The founder and CEO of the company, Rahul Sasi, said:

“We estimate that threat actors have defrauded victims of up to $128 million via such crypto scams.”

In the investigation, CloudSEK found that the attack starts by setting up fake crypto platforms that impersonate legit ones. They copy everything from legit sources, from the dashboard to user experience.

On social media, unsuspecting investors are contacted and befriended by threat actors, who frequently utilize fictitious female profiles. They persuade the victim to start trading and investing in digital assets.

The investigation stated that the profile “also shares $100-dollar credit, as a gift to a particular crypto exchange,” which is a duplicate of a legitimate crypto exchange.

Initial handsome profits for the victim increase their degree of trust. This leads to a larger investment, and that’s when the scam strikes. The investors discover their accounts are suddenly frozen, preventing them from withdrawing their investments.

TheCoinRise is constantly trying to help investors not trap themselves in any kind of scams by reporting scammy projects like Pacman Frog (PAC) scam. These fraudulent elements get really active during crypto winters, and that is why it is crucial for investors to keep track of the projects they are interested in. Here are some of the signs of a scam crypto project:

1. Lack of organic community and support on social media
2. Unexpectedly massive promises on high returns
3. No actual audit report
4. Tons of websites comparing the project with major cryptocurrencies like Bitcoin for no reason