When it comes to investment, there are different financial assets, and one among them is cryptocurrency. No doubt, if done the right way, it can also give you high returns and benefits.
But unlike financial assets like mutual funds, stocks, bonds, etc., cryptocurrency is not regulated in India. Hence, you cannot report any crypto scams to SEBI.
It is, therefore, important to stay alert, especially while choosing apps or software that support cryptocurrency investment.
Recently, our team came across a case where Vanshika (name changed) got scammed in cryptocurrency and lost ₹50,000.
Here is the narration of the incident:
ADB: Hello Vanshika, we received your data and understand that you lost ₹50,000 in cryptocurrency.
Vanshika: Yes, sir.
ADB: Can you please provide details?
Vanshika: Sure. Sir, I am a college student. A few days back, one of my friends showed me a cryptocurrency platform called ‘Invest in Crypto’ (name changed), where she had made a good profit.
Seeing this, I also downloaded the app.
ADB: Okay, where did your friend get the reference for the app?
Vanshika: A lady on a Telegram channel provided her with the link.
ADB: Okay, so how much money did you invest?
Vanshika: I added ₹50,000 as this was the minimum amount to be added to the app. I took some trades and earned a profit too. Later, I thought of withdrawing some amount.
But every time I tried withdrawing, the app showed an error, and then I realized that I had been scammed.
ADB: Sorry to hear that. One more question: did you transfer the fund to the app or any bank account?
Vanshika: I added it to the app, but first the app asked me to convert my currency, which I did with the help of my friend and then added it to the app.
ADB: That’s strange. So, Vanshika, genuine cryptocurrency platforms don’t ask you for currency conversion or have a minimum fund limit.
This clearly proves that the app was fake and you got scammed.
In this case, you can directly report it to cybercrime, where you might get some help or a refund of your capital.
Vanshika: Okay, sir. Thanks for your advice.
Whether you are investing in cryptocurrency or the stock market, it is essential to validate the background of the platform. There are multiple cryptocurrency apps, and some of them have been providing trusted and genuine services for years.
However, in case of fake apps or frauds in cryptocurrency, you cannot report to SEBI but can limit the chances of being scammed by choosing the right platform and not falling into the trap of earning high profits.
These fake apps and app providers give multiple signals and one of the biggest red flags is when the app provider asks you to download the app using their link instead of the Play Store or App Store. This is a clear sign that the app is fake and some big scams await you.
However, if you take quick action and report a case in Cyber Crime you can increase the chances of Crypto Scam Recovery. For further detail of the process, fill in your details in the form below and a callback will be arranged in no time.
