Report breaks down how fake crypto exchanges in India work
The report released by CloudSEK, a cyber-security company, throws light on an ongoing operation involving many phishing domains and Android-based fraudulent crypto applications.
- Jun 21, 2022,
- Updated Jun 24, 2022 9:26 AM IST
A fresh study published earlier this week breaks down how scammers con gullible investors in the name of cryptocurrency exchanges.
The report released by CloudSEK, a cyber-security company, throws light on an ongoing operation involving many phishing domains and Android-based fraudulent crypto applications.
The report also claims that this massive operation lures unsuspecting investors with limited domain-related knowledge into a massive gambling scam.
The report also noted that several of these fraudulent websites imitate "CoinEgg," a legitimate UK-based cryptocurrency trading platform.
The workings of these scams were broken down into the following steps by the report.
-
First, threat actors construct phony websites impersonating actual cryptocurrency trading platforms.
-
The webpages are designed to emulate the dashboard and user experience of the official website.
-
The attackers then build a female social media profile in order to initiate contact with the possible victim and establish a friendship.
-
The profile influences the victim to begin trading and investing in cryptocurrencies.
-
The victim immediately realises a substantial benefit, which increases their confidence in the platform and threat actor.
-
After the victim appears to have made a profit, the con artist gets them to spend more money by promising greater profits.
Advertisement -
Once the victim deposits their own funds into the bogus exchange, the threat actor freezes their account, preventing them from withdrawing their investment, and then vanishes with their funds.
-
When victims use multiple venues to complain about losing account access, the same or new threat actors pose as investigators to contact them.
-
To reclaim the frozen assets, they request via email that victims give sensitive information such as identification cards and bank account information.
-
The report cautioned that these details are then used to perpetrate other criminal actions.
Reports like this highlight the need for regulation in the cryptocurrency markets in India.
Also Read: Are Indian crypto exchanges headed for massive layoffs? Insiders think so - BusinessToday
Also Read: Did Crypto-tax help investors prevent heavy losses? - BusinessToday
A fresh study published earlier this week breaks down how scammers con gullible investors in the name of cryptocurrency exchanges.
The report released by CloudSEK, a cyber-security company, throws light on an ongoing operation involving many phishing domains and Android-based fraudulent crypto applications.
The report also claims that this massive operation lures unsuspecting investors with limited domain-related knowledge into a massive gambling scam.
The report also noted that several of these fraudulent websites imitate "CoinEgg," a legitimate UK-based cryptocurrency trading platform.
The workings of these scams were broken down into the following steps by the report.
-
First, threat actors construct phony websites impersonating actual cryptocurrency trading platforms.
-
The webpages are designed to emulate the dashboard and user experience of the official website.
-
The attackers then build a female social media profile in order to initiate contact with the possible victim and establish a friendship.
-
The profile influences the victim to begin trading and investing in cryptocurrencies.
-
The victim immediately realises a substantial benefit, which increases their confidence in the platform and threat actor.
-
After the victim appears to have made a profit, the con artist gets them to spend more money by promising greater profits.
Advertisement -
Once the victim deposits their own funds into the bogus exchange, the threat actor freezes their account, preventing them from withdrawing their investment, and then vanishes with their funds.
-
When victims use multiple venues to complain about losing account access, the same or new threat actors pose as investigators to contact them.
-
To reclaim the frozen assets, they request via email that victims give sensitive information such as identification cards and bank account information.
-
The report cautioned that these details are then used to perpetrate other criminal actions.
Reports like this highlight the need for regulation in the cryptocurrency markets in India.
Also Read: Are Indian crypto exchanges headed for massive layoffs? Insiders think so - BusinessToday
Also Read: Did Crypto-tax help investors prevent heavy losses? - BusinessToday