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India police officer discusses crypto crime, warns against using unauthorized private wallets

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Crypto crime and cyber crime is on the rise. There’s no denying this. Various methods, such as lucrative investment opportunities, illegitimate bank transfers and cryptocurrencies, are being used by fraudsters to dupe unassuming investors.

Well, the desire to get rich overnight through cryptocurrency investment often make the investors vulnerable to frauds or scams. So criminals are bound to take advantage of it.

Busting the ‘new fad’

Additional Commissioner of Hyderabad City Police, Shikha Goel spoke at an event hosted by the city police of Hyderabad. The topic was the “rise in cybercrime,” and cryptocurrency was a part of the discussion.

The lack of knowledge on the part of investors, greed, and the lure of getting rich quick, is easily leading them to the crypto cheaters’ net.

“They [fraudsters] ask you to share your cryptocurrency details. And once you put it in your wallet, then the money is taken away.”

Frauds on the rise

Overall, sixteen such cases have been registered involving cryptocurrencies, she added. Out of these, 14 were related to investment and trading. As per her analysis,

“People have been cheated of 3.45 crore rupees (roughly $458,000) in their greed for higher returns against investment in cryptocurrency.”

Typically, the fraudsters convince the victims to transfer their newly purchased cryptocurrencies for higher profits. Goel cautioned the crypto purchasers not to transfer their virtual currency to any other private wallets. As it could lead to huge losses.

“Once you get cheated, it is a dead end. Virtual money can never be traced back and returned to the original owner,” she opined.

Well, that’s true given the decentralized nature of these digital assets. As a fair warning to the Indian crypto investors, the commissioner said: “If you are going to be using or investing in cryptocurrency, please go only to the reputed and long-established players in this field.”

Even in the past, the said authority had raised similar warnings to alert Indian users. Nevertheless, as a precaution she tweeted:

People across the globe suffered similar fates. This has emerged as the most damaging disadvantage to cryptocurrencies. Having said that, cryptocurrencies, rather the blockchain technology, as a whole have been acknowledged for their myriad utilities.

Circling back to the crypto scene in India, ,the state government of Telangana collaborated with crypto unicorn CoinSwitch Kuber. It aims to support and equip innovative deep-tech blockchain start-ups with expert guidance and government accreditation.

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Shubham is a full-time journalist at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on crypto-regulations across the United States and Europe. Also, a die-hard Chelsea fan #KTBFFH.