Escalation in online investment scams
Upsurge in ponzi schemes the flip side of rapid digitization, say financial experts
image for illustrative purpose
New Delhi: There is a growing apprehension among the financial experts and authorities in India regarding the potential escalation of online investment scams and Ponzi schemes in 2024.
The rapid digitization of financial services, coupled with the increasing participation of Indian investors in online trading, has created an environment ripe for exploitation by fraudsters.
In recent times, the country has witnessed a surge in reported cases of online investment scams, with criminals employing increasingly sophisticated tactics to dupe unsuspecting individuals.
As per cyber crime experts, the anonymity offered by the Internet, combined with the widespread use of digital payment systems, has made it challenging for law enforcement agencies to curb these fraudulent activities.
“One of the primary catalysts for the rise in online investment scams in India is the burgeoning interest in cryptocurrencies. While digital currencies hold promise as a legitimate investment avenue, the lack of comprehensive regulatory frameworks has given scammers an opportunity to exploit the knowledge gap among investors,” said the expert.
Cryptocurrency-related Ponzi schemes, promising astronomical returns, have gained traction, especially among novice investors who are eager to capitalise on the digital currency boom. The lure of quick profits has become a common tactic employed by fraudsters to trap unsuspecting victims in elaborate financial scams.
Financial experts are stressing the need for increased awareness and caution among investors. With the economic landscape in India marked by uncertainty and volatility, individuals seeking alternative sources of income may become susceptible to fraudulent schemes that promise guaranteed returns.
Hackers have now even opened several anonymous accounts on Binance, the world’s largest cryptocurrency exchange, enabling them to convert the stolen funds and obscure the money trail.
Recently, the Delhi Police have registered an FIR after a man was duped by cyber thugs sitting abroad to the tune of Rs 83 lakh through ‘Binance Wallet’. The cyber thugs had lured the victim on the pretext of investment in crypto trading.
According to the FIR, Samir Gupta (56), a resident of Munirka Vihar, recently fell victim to online cybercrime/fraud. The perpetrators lured him into investing money in crypto trading by offering expert analyst advice through online chats on popular social media platforms WhatsApp and Telegram. They further asked him to transfer their commission through his Binance wallet.
