cryptocurrency trading scams climb as investors lose crores after social-media friend requests

Three recent incidents across different regions highlight a sharp rise in frauds tied to cryptocurrency trading. Victims were lured through unsolicited social-media contact and persuaded to use bogus trading platforms, with initial small withdrawals used to build trust before larger sums were demanded and siphoned off. Losses in these cases range from lakhs to crores of rupees, and investigations are underway.

How the frauds work: friend requests, fake platforms and staged profits

Investigations into the cases reveal a consistent modus operandi. Perpetrators initiate contact through social-media friend requests or similar outreach and then shift conversations to private messaging. They direct targets to create accounts on phoney trading platforms and encourage incremental investments. Early, small withdrawals are often allowed to convince victims the platform is legitimate.

Once trust is established, the platforms display inflated, notional profits and instruct victims that funds can be released only after paying a commission, processing fee or an alleged tax. Payments are then solicited to multiple bank accounts, often through RTGS, UPI and other online transfer modes. In one instance, a victim was persuaded to move nearly Rs 18 lakh after seeing a fabricated balance of several lakhs; in another, a business owner transferred Rs 1. 29 crore over numerous transactions before being asked for additional sums as ‘‘income tax’’ to unlock earnings. A separate complaint in a different city recorded a loss of Rs 1. 6 crore after similar tactics were used.

Scammers frequently use group chats that offer ‘‘special tips’’ and enlist fake profiles to pose as experts or references, creating an illusion of community and legitimacy. Technical tools built into the fake platforms allow fraudsters to manipulate displayed account balances and transaction histories to pressure victims into making larger transfers.

Police response, investigation steps and recovery efforts

Law-enforcement teams have registered cases and begun technical analyses of the trading links, mobile numbers and transaction trails. Authorities are seeking to trace beneficiary bank accounts and, where possible, freeze funds. Investigators are also working to determine whether the networks operate domestically or have overseas links.

Officials handling these complaints advise the public to avoid paying any commission or processing fee to withdraw funds from a trading platform. They urge immediate reporting of suspicious approaches and promised payouts to the designated cyber helplines to improve the chances of fund recovery. In ongoing probes, police are examining app code, server logs and communication records to map the fraudsters’ networks and identify the accounts that received transfers.

Despite active investigations, recovery is often complicated by the speed of transfers, multiple beneficiary accounts and the use of intermediaries. Freezing and reclamation of funds remain the primary immediate remedies being pursued by investigators.

Practical steps for investors to avoid falling prey

Cybersecurity experts and investigators emphasize several practical safeguards for anyone approached with an unsolicited investment pitch. Verify the identity of anyone who initiates contact, do not click on unfamiliar links, and resist pressure to move money quickly. Before investing, confirm the legitimacy of trading platforms through independent reviews, regulatory registrations and verified contact channels. Be wary of promises of unusually high returns and of any platform that requires an upfront ‘‘commission’’ to release funds.

Victims are encouraged to preserve all communications, transaction records and screenshots and to provide these to investigators when filing complaints. Prompt reporting to law enforcement increases the chance of tracing transactions and blocking further losses.

The recent spate of cases serves as a reminder that social-media introductions can be exploited to initiate sophisticated cryptocurrency trading frauds. Caution, verification and rapid reporting remain the most effective defenses.