Common types of Crypto scams in India - 2024

Below are some of the most Common types of Crypto scams in India - 2024

Many people in India are falling for Cryptocurrency scams with Get Rich Quickly by investing in Cryptocurrency. Some Apps & Website offer to invest in Bitcoin and other Cryptocurrency on your behalf but they are simply frauds.

• Fraudulent ICOs

The biggest scam out there by far in terms of crypto scams is ICO-Initial Coin Offering. What happens is in order to raise funds for a start-up the start-up will instead “offer their own brand of ‘tokens’ in exchange for popular cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH). The scammers offer investors millions of dollars worth of their new cryptocurrency in exchange for money to fund the startups. The difference between ICO’s and IPO’s is that IPO’s are regulated by the Government entities such as SEC, SEBI etc which means the financial authorities ensure that regulations are abided by and everything runs above board. An ICO is not protected by any financial authority and therefore can mean that the funds are not recoverable and the people who started the startup can quickly disappear and run away with the money.

• Fake Exchanges

According to the screen, it appears as though you are buying bitcoin or other types of cryptocurrency, but there is no reality beyond the pixels of the screen. No exchange is actually taking place! It is kind of like playing a computer game. You think you are trading and buying a real cryptocurrency when in fact you are just trading on a totally made-up screen that has been programmed to go up and down at random, not connected at all to the movements of the real crypto exchanges.

• Fake Wallets

Cryptocurrency wallets, like regular wallets, are used to store your ‘cash’. Just like you want your regular wallet to securely store your cash, you want a strong cryptocurrency wallet that will keep your bitcoin or forex secure. Visit a reputable site and get recommendations for a safe wallet before you buy one.

• Ponzi Schemes

A Ponzi scheme will encourage investors to recruit others to invest in the same cryptocurrency company in order to increase profits. Ponzi schemes often promise extremely high returns in a short space of time. Ponzi schemes are not specific to Cryptocurrency but they have made their way into the crypto world too.

• Phony mobile apps

Scammers create mobile apps that very closely resemble the app of a reliable crypto company. Be sure to look out for misspellings in the app as well as the coloring. Even once the app is deleted, it could still cause trouble. So definitely make sure that you have selected the app you think you are selecting before you actually download it.

• Fake websites

Like mobile apps, scammers create websites that look very similar to their reliable counterparts. Do not be fooled, ensure the website is secure (see below for how to tell a secure website from an insecure website). But beware, the initial website may be ‘secure’, but you may be directed to an insecure webpage for payment. Be aware of this trap every step of the process.

What can a crypto scam victims in India do?

1. Contact us and schedule an appointment with us if you have been scammed. The Wild West atmosphere of cryptocurrency and ICO markets can lure even careful investors into fraudulent schemes. We will work to help you recover your crypto investment losses. Cryptocurrency fraud harms thousands of investors every year. Don’t be a statistic. Take action against the perpetrators and recover your money from cryptocurrency scams. Please note that all consultations are paid consultations.
2. Call the Government Helpline 155260 and tell them you’ve been scammed.
3. Log your case with Authorities.
4. If you used a debit or credit card to buy your cryptocurrency, you could request a chargeback, although this does not guarantee that your money will be recovered.

DISCLAIMER

The contents of this article are for information purposes only and do not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that we are not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. CA Mitesh and Associates is Mumbai's leading Cryptocurrency Taxation Firm which is committed to helping people navigate complex tax laws and banking regulations. Our main aim is to assist the individuals with applicable laws & regulations compliance and providing support at each & every level to make sure that they stay compliant and grow continuously. For any query, help or feedback you may get in touch here - Appointment with CA. Please note the all consultations with the CA are Paid consultations.

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