Indian Police Commissioner Shikha Goel has urged citizens to exercise caution when handling their crypto assets
The legal status of cryptocurrencies in India has remained ambiguous, but that uncertainty has not stopped fraudsters from exploiting uninformed investors. Hyderabad City Police’s Additional Commissioner, Shikha Goel, recently issued a warning about rising crypto-related scams as reports of such incidents increase. She advised Indian citizens considering crypto investments to use only trusted and well-established platforms.
“If you are going to use or invest in cryptocurrency, please turn only to reputable and well-established players in this field,” she cautioned.
Greed and the desire for overnight riches drive crypto crimes
Earlier this month, The Times of India reported that cases of cryptocurrency fraud rose from 2 last year to 54 between January and November this year. The news outlet said cyber police registered three cases involving 11 people during the final two weeks of November.
Suspects use a variety of schemes to steal from victims, including enticing investment opportunities, fake exchange websites and forged credentials, according to Deputy Commissioner of Cyber Police Bhagyashri Navatake. She noted that the absence of a clear legal framework regulating the use and adoption of cryptocurrencies in the country should be reason enough for people to steer clear of such investments.
Navatake added that criminals prey on victims’ eagerness to make quick money through cryptocurrencies. Another senior officer in the department held victims partly responsible for investing in crypto despite knowing these assets are unregulated.
Speaking at an event hosted by the Hyderabad City Police, Goel addressed the topic of crypto fraud and observed a noticeable rise in such cases. Like Navatake, she attributed many of the scams to greed and a lack of awareness among crypto users.
The decentralized nature of cryptocurrencies makes them hard to trace
The Police Commissioner noted that fraudsters often trick victims into sending their acquired crypto assets with promises of huge returns.
“They [cybercriminals] ask you to share your cryptocurrency details. And once you put it in the wallet, the money is taken,” Goel explained.
She shared a tweet urging investors to stop transferring their assets to unverified wallets to avoid being defrauded. Goel further explained that stolen assets are difficult to recover because of their decentralized nature, often leading to dead ends for investigators.
In an interview with The Hindu, Goel said only two of the reported crypto-related incidents fell outside the investment category. The Additional Commissioner (Crimes and SIT) revealed that victims have lost Rs 3.45 crore (approximately $460,000) to crypto scammers. Through her Twitter account, she urged citizens to report any instances of cyber fraud promptly so authorities can act quickly.