A 62-year-old professor in Mumbai was duped of INR 1.93 crore in a social media cryptocurrency scam.
This is a typical case of a scam through fake relationships on Facebook, with sophisticated tricks to appropriate the victim's investment money. The case is being investigated and handled by the authorities.
MAIN CONTENT
Fraudulent techniques rely on virtual relationships to convince investors to invest in cryptocurrencies.
Legal action has been initiated under the Indian Information Technology Act.
India does not have a specific cryptocurrency law to deal with related crimes.
How the INR 1.93 crore crypto scam unfolded?
Security experts and tech police say that social media-based trust-building scams are common. The victim, a retired professor, met a woman named Ayesha on Facebook and was gradually persuaded to invest in cryptocurrency.
The woman created a Binance account using the victim’s information, asked him to transfer money, and then stole the entire amount of INR 1.93 crore. The incident was widely reported in reputable Indian news sites in 2024.
The subject uses psychological methods to create fake trust, which is very difficult to detect without in-depth knowledge of technology and digital finance.
Dr. Ramesh Kumar, Cyber Security Expert, April 2024
How has Indian law responded to cryptocurrency scams?
The Mumbai West Cyber Security Division has registered an investigation and filed a case under various sections of the Indian Information Technology Act. Under current regulations, cryptocurrency fraud can be punished with a jail term of three to 10 years and a hefty fine.
At the same time, the National Cybercrime Reporting Portal operated by the Reserve Bank of India aims to help citizens report scams and related cybercrimes quickly and effectively.
“We are focusing on perfecting legal measures to protect users from new forms of fraud in the cryptocurrency sector”
Commr. Anil Joshi, Head of Cyber Security, Mumbai, May 2024
Why Does India Still Lack a Complete Legal Framework for Cryptocurrencies?
Although India has over 100 million cryptocurrency users, no legal drafts have been officially issued since 2023. In June 2023, the government planned but did not implement a separate law for cryptocurrencies, leading to a legal vacuum.
This has resulted in many cryptocurrency-related crimes not being handled effectively, while increasing risks for investors and reducing the reputation of the domestic cryptocurrency market.
What steps has the Indian government taken to regulate the cryptocurrency market?
Recently, the government has issued regulations on income tax from cryptocurrency transactions, transparent reporting requirements, and anti-money laundering regulations applicable to exchanges and related organizations.
However, legal regulations against cryptocurrency scams have not yet been integrated into the legal system, leaving users vulnerable to sophisticated forms of fraud.
Aspects Current Law Draft not yet issued Penalties for cryptocurrency fraud 3 – 10 years in prison, large fines Not specific and unclear Reporting and monitoring Reserve Bank of India supports reporting of cybercrime No regulations on cryptocurrency transaction management Tax regulations Taxes have been imposed on cryptocurrency transactions Incomplete investor protection law
Frequently Asked Questions
How much money did the professor lose? He lost a total of INR 1.93 crore through multiple cryptocurrency investment transfers. How does this scam work? The scammer creates a fake relationship on social media, builds trust and then appropriates the investment money. Which agency handles the case in India? Mumbai Cyber Security Bureau and relevant agencies under the Indian Information Technology Act. What are the laws on cryptocurrencies in India? There is no separate law, only general tax and anti-money laundering regulations. How to report cryptocurrency crimes? You can use the National Cybercrime Reporting Portal developed by the Reserve Bank of India.
Source: https://tintucbitcoin.com/electronic-money-scam-mat-193-crore/
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