\n<\/p>\n
Last year in March, 24-year-old Kapil Singh, an employee at a private firm in Gurgaon, decided to cash in on the cryptocurrency boom. He and his friends looked up several social media handles that discussed investing in Bitcoin and Ethereum, and decided to put in money in a US-based company that seemed legitimate. Months later, Singh found out it was not.<\/p>\n
Singh is among several people to have been duped by scamsters, who have found a new avenue in cryptocurrency and are using fake virtual currency or apps to con people. As per data from the National Cybercrime Reporting Portal, more than 50 complaints were lodged in Delhi from January to June last year; Delhi reported the second-highest complaints of crypto scams after Maharashtra, where 72 cases were lodged. The unofficial number, though, is likely higher.<\/p>\n
Singh said: \u201cI had started working in 2020 and wanted to invest in cryptocurrency. I came across a man on Twitter with a verified ID and lakhs of followers. His scheme seemed genuine as he said he has been investing in cryptocurrencies since 2009 and many celebrities tweeted about him.\u201d<\/p>\n
Singh and his friends started investing Rs 5,000- Rs 10,000 per month. Initially, they received some refunds and gifts. Some of Singh\u2019s friends even received phones.<\/p>\n
\u201cWe were very impressed. We found a scheme where you can spend Rs 25,000 and later receive a Samsung<\/a> phone. Later, there was an Ethereum scheme where you could purchase coins through his website. I spent over Rs 70,000 hoping for good returns. We then found that we had been cheated \u2014 the site was gone, and so was all the money. I was very scared to tell my family because this was my savings. My friends found out that he had cheated over 500 people like this. We kept messaging him, but he never responded\u2026,\u201d said Singh.<\/p>\n According to Delhi Police, several gangs operating fake apps, phishing websites or call centres claiming to deal in cryptocurrency have been busted over the past year.<\/p>\n In the last 12 months, DCP (Cyber Cell) KPS Malhotra said, more than 20 persons were arrested in three cases and Rs 35 crore in assets was frozen by the CyPad team in Delhi. The cheated money is estimated to be to the tune of Rs 200 crore.<\/p>\n Singh said, \u201cThey operate through shell companies, fake investment apps, multi-level marketing (MLM) schemes\u2026 The accused can be traced once we get complaints, bank transaction details and website information.\u201d But police admitted that arresting the culprits is not always easy as many operate from abroad.<\/p>\n The MO<\/strong><\/p>\n Just like the stock market, the crypto market has exchanges or brokers that act as facilitators. These exchanges often charge a fee or commission for each transaction. Some even give rewards for hitting a milestone, others offer a joining bonus. This was how Priyanka Joshi (27), who runs her father\u2019s clothing store in Ghaziabad, fell prey to such a scam. In 2020, she spotted ads on Facebook<\/a> about a company called \u2018Forex Bitcoin\u2019, which promised 30% returns in less than a year along with other \u2018schemes\u2019.<\/p>\n \u201cI asked my friends and they told me it was safe. We were invited to a Telegram group where we could chat with other investors. My father trusted me, and I invested more than Rs 2 lakh in an MLM scheme in a year. They had Google<\/a> Pay and Paytm<\/a> gateways, so we thought it was genuine\u2026 We also had the option to take out some amount for emergency use. I even pushed my relatives to invest, some of them invested Rs 10,000- Rs 50,000. We were receiving credit coins in our e-wallet and got offers on mobile recharge and electricity bills. We were told we will receive Bitcoin, but in August 2021, the website was gone,\u201d said Joshi.<\/p>\n Her family filed several complaints in Ghaziabad, Delhi, Noida and on the cybercrime portal. \u201cLosing Rs 2 lakh is a lot for us. We needed the money because we had to shut our shop during the lockdown. My father was upset, and my relatives were angry. Nobody helped us. We still try to connect with the admins of the group\u2026 hoping to get some of the money back,\u201d said Joshi.<\/p>\n Similarly, Shrikant Kaushik, a trader from Gurgaon, said he lost more than Rs 6 lakh after a group of men convinced him to \u201cinvest in cryptocurrency\u201d.<\/p>\n \u201cIn 2019-20, I came across several social media influencers promoting an investment scheme. Their profiles were verified, and I was promised an iPhone if I invested in their company. I started giving Rs 2,000-Rs 5,000 a month. I received Rs 500 per month in e-wallets that could be used for mobile and DTH recharge; some investors also received phones. We were then told to buy Ethereum coins using their platform, I bought five for a rate of Rs 50,000 per unit. Soon, I saw posts of other influencers saying the schemes are fake. I was shocked and realised that all my money was gone,\u201d he said.<\/p>\n \u201cMy father is a retired official, and I am the breadwinner. I have tried to lodge complaints in Haryana and Delhi but haven\u2019t got an update on the case. I lost a lot of money, and I am still trying to recover it,\u201d he said.<\/p>\n
Police said a majority of scamsters use the reward system and promise of high returns to lure investors. They create fake apps in China and invite people in India using social media bulk messaging and marketing to invest.<\/p>\n