FBI Gives Warning on Increase in Crypto Related Investment Scams

The FBI has a Report It has been reported that last year, frauds under the guise of investment in cryptocurrencies increased to $3.94 billion. Last year, people had lost approximately $2.57 billion in these frauds. In such scams, fraudsters offer crypto-related investment advice and ask people to invest money in fake tokens. In this, the lure of getting higher returns is given. Generally, social media platforms like Facebook and Twitter are used to trap people in this scam. The FBI has reported that last year it received approximately 8,80,400 complaints of financial scams. There was a loss of approximately $12.5 billion in these scams.

In most crypto scams, the stolen funds are sent to crypto platforms through custodial accounts registered with them. The FBI has asked people investing in crypto to enable two-factor authorization so that their funds cannot be transferred to other accounts without their permission.

There has been an increase in crypto related fraud cases in India too. Recently, in a similar case, the Enforcement Directorate (ED) had filed a chargesheet under the Anti-Money Laundering Act against 299 firms, including 10 people from China. This case is about cheating people under the guise of mining cryptocurrencies like Bitcoin. ED had said that a special court in Dimapur in Nagaland has taken cognizance of the complaint filed by the prosecution under the Prevention of Money Laundering Act (PMLA). In this case, 299 firms including more than 70 Chinese-controlled firms have been made accused. The directors of 10 of these firms are from China. The ED had filed a money laundering case following an FIR lodged by the Cyber ​​Crime Unit of Kohima Police.