Fake Crypto Exchanges Deceived Indian Investors of Rs 1,000 Crore

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Fake Crypto Exchanges Deceived Indian Investors of Rs 1,000 Crore
21 Jun 2022
5 min read

News Synopsis

According to a new report on Tuesday, fake crypto exchanges have deceived Indian investors for more than US $128 million as the global crypto market tanks. Cybersecurity company CloudSEK said it has discovered an ongoing operation involving multiple phishing domains and fake Android-based cryptographic applications.

CloudSEK was approached by victims who lost Rs 50 lakh due to such crypto fraud, in addition to other costs such as deposits and taxes, etc.

Threat actors first create fake domains disguised as legitimate crypto trading platforms. The website is designed to duplicate the dashboard and user experience of the official website. 

The attacker then creates a female profile on social media to approach and build friendships with potential victims. Profiles influence victims to invest in cryptocurrencies and start trading.

Victims first make a big profit and increase their confidence in the platform and attackers. After the victims appear to be profitable, the scammers persuade them to invest more money and promise better profits.

When victims of various platforms complain about losing access to their accounts, the same or new threat actors contact them in the guise of investigators.

In the long run, a collaboration between crypto exchanges, Internet Service Providers (ISPs), and cybercrime cells is essential to raising awareness of threat groups and taking action, "says Rahul Sasi, Founder, and CEO of CloudSEK.

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