In a troubling incident highlighting the growing sophistication of cryptocurrency scams, an Indian doctor has been deceived into transferring over $35,000 as part of a drug-related fraud scheme. This case underscores the increasing risk of such scams as they become more elaborate and targeted.
Scammers Pose as Authorities to Exploit Victim
Local media reports indicate that the doctor, residing in Maharashtra, received a call from scammers who falsely claimed that a parcel she allegedly sent to Thailand contained “MD drugs,” along with three passports and three SIM cards.
The scam occurred between August 2 and 6, with the scammers pressuring the doctor to download a mobile app and purchase cryptocurrencies worth INR 30,86,535 (approximately $36,763).
Following this, the doctor was instructed to transfer the funds to various bank accounts, a tactic designed to hinder law enforcement from tracking the money.
As is common in such scams, the perpetrators posed as representatives from legitimate organizations, such as the police, courier services, or government agencies. They employed fear tactics to create a sense of urgency, suggesting that the doctor could face legal trouble if she did not comply.
Payments, typically requested in cryptocurrencies, are presented as an immediate remedy to avoid further issues. Once the victims transfer the money, the scammers vanish.
India has experienced several similar scams in recent years. A December 2023 investigation by cyber crime officials in Pune uncovered that over 12 victims had lost more than $480,000 in such schemes.
Investigations revealed that the stolen funds were laundered through multiple bank accounts before being used to buy cryptocurrencies, which were then transferred out of India to China, Dubai, and Taiwan.
In response, Indian regulators have tightened controls on cryptocurrency exchanges. The Financial Intelligence Unit now requires cryptocurrency platforms to register with the regulator, and unregistered platforms are blocked.
Additionally, the Enforcement Directorate has been targeting fraudulent investment schemes exploiting cryptocurrency hype to defraud investors.
Despite these efforts, cryptocurrency-related crimes continue to rise, with even some law enforcement officials being implicated. Without a specific regulatory framework for cryptocurrencies, these crimes are prosecuted under existing laws.
