Crime Hyderabad

Cyberabad police cautions about crypto trading frauds

Crypto Trading Frauds

Hyderabad: Next Time, when you are added to any channels or groups on instant messaging platforms claiming to be formed for indulging in cryptocurrency or Bitcoin trading, you might be on the verge of getting duped by the crypto scammers. With the increasing menace of crypto trading, Cyberabad police cautioned those indulging in crypto trading to not fall prey to those kinds of frauds. Moreover it is making it difficult for the police to recover the money lost.

As the popularity of crypto currency rises and peer to peer or P2P trading becomes more accessible, cyber fraudsters actively target participants through various communication channels, including Telegram. More alarming is the fraudsters claiming it to be a legitimate trading activity – converting criminal proceeds.

Explaining the modus operandi of the fraudster, Cyberabad cybercrime police said, “P2P trading platforms, recognizing the benefits of this mode, increasingly promote it. However, this shift exposes individuals to the risk of aiding cyber fraudsters, either knowingly or unknowingly, in laundering criminal proceeds through cryptocurrency and transferring funds abroad. They exploit unsuspecting individuals by converting criminal proceeds—whether from Indian Rupees (INR) to crypto or vice versa—under the guise of legitimate trading activities”.

Unfortunately, individuals eager to profit from P2P crypto trading often remain unaware that they are inadvertently handling illicit funds. Consequently, when these individuals file complaints through the 1930 helpline or cybercrime reporting portal, their transactions become flagged, leading to the freezing of their bank accounts. Initially, the individual’s bank account is frozen. Consequently, while the fraudster absconds with converted funds, the innocent crypto trader faces significant hardships.

Dodging law enforcement agencies with intermediary “mule” accounts

With law enforcement agencies intensifying efforts through the 1930 online financial fraud helpline and cybercrime reporting portal, freezing bank accounts linked to fraudulent transactions has become more common. Consequently, fraudsters have resorted to using intermediary “mule” accounts to evade detection. Moreover, these cybercriminals continuously devise new tactics to avoid apprehension and launder illicit proceeds. Consequently, law enforcement authorities encounter greater challenges in recovering stolen assets.

Cyberabad police cautioned cryptocurrency investors to ignore any messages regarding part-time job offers or online trading and Refrain from engaging with messages or calls concerning cryptocurrency trading. Further advice to abstain from participating in peer-to-peer (P2P) crypto trading.