Indian Investors Suffer Massive Loss In Fake Crypto Exchange: Report

Several phishing websites and a fake cryptocurrency based on android have been detected by cyber security company CloudSEK

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Indian investors have been defrauded by fake cryptocurrency exchanges worth Rs. 1 crore, while the global cryptocurrency market is in complete decline, according to a new report released by a cyber security company CloudSEK as it detected several phishing websites and a fake cryptocurrency based on android.

According to the reports, unwary individuals are trapped in the massive gambling scams with these bogus websites. Many of such websites also pretend to be "CoinEgg", the UK based cryptocurrency trading platform.

One of CloudSEK's customers allegedly contacted the company about losing Rs 50 lakh as a result of the cryptocurrency scam, along with other costs such as deposit, tax, etc.

CloudSEK CEO Rahul Sasi estimates that thread actors have defrauded victims of up to $128 million through such crypto scams. Further, he said that scammers and cheats are turning their attention to cryptocurrency markets as investors focus there.

Initially, the hackers created fake domains to pretend to be legitimate crypto trading platforms. The websites are also created in such a format that they look exactly like the official website's dashboard and user experience.

The hackers then create a female profile on the social media platform and approach the victim and develop a friendship with them. Due to their rapport, the victims seem to invest in crypto currency.

The report also mentions that the fake profile also shares a $100 dollar credit token as a gift to some particular crypto exchange, which again impersonates legitimate crypto exchanges. In the starting period, the victim actually gets a lot of profit, which helps the hackers develop trust in them. Then, after the initial profit, the scammers convince them to have a higher amount of profit.

Once a huge lump sum amount is deposited, the scammers actually freeze the amount so that they can't withdraw it and then ghost the victim. When victims start complaining regarding their losses on different platforms, the cheat keeps up the masquerade and asks for their confidential information, such as ID cards and bank details, to investigate the matter. The personal details are again used for malicious activities.

It's very crucial that collaboration between crypto exchanges, internet service providers and the cyber crime cells to take actions against such scammers and to bring in awareness, said Sasi.

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