Indian Contractor Loses $200,000 in WhatsApp Crypto Scam

An Indian civil contractor, Ramesh, was duped into losing approximately $200,000 in a romance crypto scam orchestrated through WhatsApp. The scammer, posing as a potential bride named Priyanka, initially connected with Ramesh through a matrimonial website and began conversations on WhatsApp starting April 11. The scammer claimed to work for a cryptocurrency trading company based in Singapore and convinced Ramesh to invest through a fake trading app, promising high returns.

Ramesh's initial investment of INR 50,000 (around $583) yielded a profit of INR 8,300 (around $100), enticing him to transfer larger sums through bank transfers and UPI payments. Over the course of three months, Ramesh deposited a total of INR 1.67 crore (around $200,000) into the fake crypto investment app. However, when he attempted to withdraw his earnings, the app locked his wallet, preventing any withdrawals. The scammer then demanded an additional INR 25 lakh (around $29,175) to release the funds, which Ramesh refused to pay. He subsequently blocked the scammer on WhatsApp and deactivated the phone number.

Upon realizing the fraud, Ramesh reported the incident to the Cyberabad Police. A case was registered under various charges, including cheating, forgery, and electronic-media impersonation. Authorities are investigating multiple bank accounts and mobile numbers linked to the scam. The police have issued an alert about the increasing use of social platforms by cybercriminals to target unsuspecting individuals.

This incident highlights the growing sophistication of online scams that exploit personal relationships and emotions to defraud individuals. The use of cryptocurrency in such scams adds complexity due to the irreversible and difficult-to-trace nature of transactions. The decentralized nature of cryptocurrency also means there is no central authority to regulate or oversee transactions, making it a preferred method for scammers.

To protect against such scams, individuals should exercise caution when engaging in online relationships, especially those involving financial transactions. It is crucial to verify the identity and intentions of individuals encountered online and to be wary of promises of quick or easy financial gains. Using secure and reputable platforms for financial transactions and being cautious of requests to transfer funds in cryptocurrency can also help mitigate risks. Education about the risks associated with online scams and proactive measures to safeguard financial security are essential in reducing the likelihood of falling victim to such fraudulent activities.