Among many other investment options, cryptocurrency is one. Although it is legal, but is not regulated in India. Stil, many people opt for investing in cryptocurrencies because of their exciting opportunities.
But many people look at it as a quick way to earn money and sometimes end up investing in fake cryptocurrencies, losing their hard-earned money.
And since it is not regulated, it becomes difficult for victims to claim recovery. Recovery is hard, and therefore, it is important to be more aware. Here are the listed tips on how to avoid crypto scams in India.
How to Spot & Avoid Crypto Scams in India?
Crypto scams in India are on the rise. Every other day, one or another crypto scams are reported in one or another part of the nation.
Recently, Indian police uncovered a large-scale crypto fraud operation under the name “RSN crypto,” which duped over 2,000 victims and led to losses of $2.4 million.
Three individuals were arrested in connection with the scam.
Now, money collected by scammers is generally siphoned off overseas, hence almost impossible for the victim to recover the losses.
This increases the need to be more active and alert while using any crypto platform or coming across any schemes offering huge benefits.
You can follow some tips to identify such a scam and protect yourself from becoming another target.
1. Stay Away from the Promise of High Return
Cryptocurrency is just another investment asset, and like any other investment,t it involves risk too. So, if you come across any Ad, video or offer promising you a high return on cryptocurrency investment.
Stay away and avoid getting into details.
2. Verify the Platform Before Investing
Before investing in any cryptocurrency, validate the details by checking white paper. Every legitimate cryptocurrency have a whitepaper since this is one of the most critical aspects of an initial coin offering.
The whitepaper must have information on how the cryptocurrency has been designed and how it will work.
In case, you get poorly written details or only verbal information, that is the biggest sign of the scam. Avoid investing in any such investment scheme.
3. Download Apps from the Play Store or the App Store
The most common way by which scammers deceive people is through clone apps. They generally induce people to invest in fake cryptocurrency through videos or flashy ads.
In the greed of earning high returns, people click on ads that redirect them to a WhatsApp group with the link to the clone app or directly to the page asking to download a clone app that mimics any one of the legitimate platforms.
To avoid this, always download the app from the Play Store or App Store. On such platforms as well, make sure you check google reviews & ratings to pick the right & legitimate one.
4. Watch Out for Ponzi Schemes
These schemes generally work on high-return and zero-risk crypto investment schemes. But in reality there is no such investment that comes with no risk.
Fraudsters lure new investors and use their investment amount to pay returns to old investors. But once they fail to add more people, the scheme collapses the scammer runs away with your hard-earned money.
Don’t fall into the trap of high returns, and avoid investing in crypto investment schemes that promise guaranteed returns.
5. Be Wary of Fake Giveaways & Airdrops
People generally run ads and fake campaigns that claim to give away free crypto.
But there is an easy way to identify and avoid such crypto scams. They ask for a small deposit first by sharing the link. Now these links often redirect you to a fake website asking you to enter your sensitive details or make a small payment to claim the reward.
These links generally contain malware that provides access to your bank account to scammers, resulting in losses.
How to Report a Crypto Scam in India?
The best way to avoid scams is to stay informed and learn ways of how crypto scams work. If something sounds too good to be true, it probably is.
However, if you have been unfortunate in identifying the scam and have fallen victim, then do not panic. There are ways to recover some or the whole amount.
Register with us now and get full assistance on how to report such scams in India.
