Below are some of the most Common types of Crypto scams in India - 2021
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.
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.
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.
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.
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.
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?
- Contact us and schedule an appointment with us so that we can guide you appropriately. All consultations are paid consultations.
- Call the Government Helpline 155260 and tell them you’ve been scammed.
- Log your case with Authorities.
- 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.