Cryptocurrency trading scams surge as victims lose crores in social media traps
Fresh complaints filed with cyber police this week reveal a string of cryptocurrency trading frauds that have cost victims lakhs and crores. Scammers used social media friend requests, messaging apps and sham trading platforms to build trust, show fabricated profits and then extract large sums in the name of commissions or taxes.
How the scams are being executed
Investigations show a common pattern: an unsolicited friend request or direct message on social media leads to a private chat. Conversations are shifted to messaging apps, where the fraudsters pose as helpful traders or introduce a purported expert. Victims are then directed to create accounts on a fake platform or install an app that displays simulated trades and inflated gains.
Perpetrators initially allow small withdrawals to establish credibility. Once trust is gained, they show substantial notional profits and demand a payment—framed as a commission, withdrawal fee or income tax—before funds can be transferred to the investor's bank account. Payments are typically routed through multiple beneficiary accounts using RTGS, UPI and other channels, complicating recovery efforts.
Recent incidents underline the scale and tactics
In separate cases across multiple cities, victims lost sums ranging from several lakhs to over a crore. In one instance, a businessman found that a notional profit vanished after he paid what he was told was a processing fee; in another, a young man was persuaded to transfer a large lump sum after being shown fictitious returns on a platform called 'Hizcoin Shop'.
Investigators have noted recurring elements: fake social media profiles, voice calls over messaging apps, staged trading dashboards and pressure to pay additional sums to unlock funds. When victims request withdrawals, the narrative shifts to new demands for money, and the fraudsters eventually cut off contact. Law enforcement agencies have begun technical analysis of trading links, mobile numbers and transaction trails to trace the networks and freeze beneficiary accounts where possible.
What authorities and experts are advising
Police warn the public to be extremely cautious about unsolicited investment offers on social media. Key precautions include verifying the authenticity of any trading platform before sharing personal information or transferring funds, never paying a commission or processing fee to withdraw supposed profits, and avoiding clicking on suspicious links received private messages.
Experts also advise that investors independently confirm the credentials of anyone offering trading tips and to use only regulated exchanges and verified apps. If someone believes they have been defrauded, immediate reporting to the cyber police and the cyber helpline 1930 can improve the chances of tracking and recovering funds, investigators say.
Authorities are probing whether the networks operate entirely within the country or have overseas links. As inquiries continue, law enforcement officials emphasise prevention: skepticism of unsolicited offers, careful vetting of platforms and prompt reporting remain the best defenses against evolving cryptocurrency trading frauds.
