- Cryptocurrency investors are being targeted by cyber fraudsters promising high returns and risk-free investments.
- Fraudsters initially offer good returns to build trust before blocking accounts and disappearing with invested funds.
- Officials warn that young professionals, businessmen, students, and IT workers are the primary targets of these interstate fraud operations.
Hyderabad cyber security officials have issued a warning to cryptocurrency investors about new fraud schemes targeting digital currency holders. These scammers are developing sophisticated methods to target individuals investing in popular cryptocurrencies like Bitcoin and Ethereum, according to investigators. The warning comes as more people incorporate digital assets into their investment portfolios.
Cyber security experts have identified a common pattern in these Scams. Fraudsters contact potential victims through various channels including social media, phone calls, emails, and text messages, promising unusually high daily returns on cryptocurrency investments. They offer to handle all trading activities on behalf of investors and claim to provide direct profit transfers with the option to withdraw funds at any time.
“Those who fall in their trap and start investing in cryptocurrency are initially given good returns for a few months, which builds trust. Eventually, fraudsters block the accounts and scoot,” explains a cybercrime official.
Investigations have revealed that these operations are run by interstate gangs primarily based in Uttar Pradesh, Madhya Pradesh, Delhi, Mumbai and other northern regions of India. The criminals specifically target young professionals, businessmen, students, and IT employees looking for quick investment returns.
Sophisticated Operation Techniques
Law enforcement has discovered that some fraud rings create private WhatsApp groups with cryptic names related to cryptocurrency investments. These groups can include hundreds of potential victims from various states. Within these closed communities, fraudsters share fabricated investment success stories, false profit updates, and templates showing high returns.
Once victims are fully convinced, they’re instructed to download fake investment applications and deposit money to begin “trading.” Cybercrime officials note that access to these accounts typically remains with the fraudsters, who continue providing falsified profit reports until eventually disappearing with the funds.
Understanding Cryptocurrency Risks
Officials have provided crucial information to help potential investors avoid these scams. They emphasize that cryptocurrencies exist primarily in digital form and typically involve direct person-to-person exchanges without banking intermediaries. While Bitcoin and Ethereum are legitimate cryptocurrencies, their values fluctuate constantly, and transactions generally lack legal protections.
Importantly, cryptocurrency transactions are typically irreversible and not backed by government guarantees. Legitimate cryptocurrencies can be purchased through established online exchanges or earned through mining, and properly stored in digital wallets located online or on personal devices.
Authorities continue to investigate these cases while warning the public to exercise extreme caution when approached with cryptocurrency investment opportunities promising guaranteed returns.
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