Hyderabad Police Commissioner Shikha Goel urged citizens to exercise caution when handling their cryptocurrency assets
The legal status of cryptocurrencies in India remains uncertain, but that hasn’t stopped fraudsters from exploiting uninformed investors. Hyderabad Police Commissioner Shikha Goel recently warned the public about a rise in cryptocurrency scams and advised anyone considering investing in crypto to use only trusted, reputable platforms.
“If you intend to use or invest in cryptocurrencies, approach only well-established and reputable entities in this sector,” she cautioned.
Greed and the desire to get rich quickly drive cryptocurrency crime
Earlier this month, The Times of India reported that the number of cryptocurrency fraud cases rose from 2 last year to 54 between January and November this year. The report noted that the cyber police department registered three cases against 11 individuals during the final two weeks of November.
Deputy Commissioner Bhagyashri Navatake explained that suspects employ a variety of schemes to defraud victims. These include enticing investment offers, fake exchange websites, and falsified credentials. She pointed out that the absence of clear legal frameworks governing the use and adoption of cryptocurrencies in the country should be a strong reason for people to avoid crypto investments.
Navatake added that criminals prey on victims’ eagerness to make quick profits through cryptocurrencies. Another senior officer in the department said that victims bear some responsibility for investing in unregulated assets while knowing there is no formal oversight.
Speaking at an event organized by Hyderabad Police, Goel addressed the growing problem of cryptocurrency-related crime. Like Navatake, she attributed the rising number of scams to greed and a lack of awareness among crypto users.
The decentralized nature of cryptocurrencies makes them difficult to trace
Commissioner Goel noted that fraudsters lure victims into transferring purchased crypto assets by promising large returns.
“They [cybercriminals] ask you to share details about your crypto. Once you place them in the wallet they provide, the money is taken,” Goel observed.
She urged investors to stop transferring their assets to unverified wallets to avoid being defrauded. Goel explained that stolen assets are difficult to recover because of the inherent, decentralized nature of cryptocurrencies, often leading investigations into dead ends.
In an interview with The Hindu, Goel said only two reported crypto-fraud incidents were unrelated to investment schemes. The Additional Commissioner (Crimes and SIT) disclosed that victims lost approximately $460,000 to crypto fraudsters. Through her social media account, Goel encouraged citizens to report any cyber fraud incidents promptly so authorities can respond quickly.