India is one among the world’s leading hub for call centre related scams. Either it be a scarcity of strict regulatory measures to prevent such activities or the scammers’ resilience to start out over every time their business is busted, but call centre scams have only grown more prevalent within the country.
With cryptocurrencies slowly gaining ground within the subcontinent, groups of scammers are also taking advantage of Indians’ increased interest in digital assets.
The founder and CEO of a blockchain and cryptocurrency research company Crebaco, Sidharth Sogani, revealed that so far, MLM schemes and “fixed return” cryptocurrency investment schemes are the foremost common.
Sogani added that new and inexperienced cryptocurrency users often prefer to overlook the technicalities of those investment schemes and put in their funds directly so as to form some quick money.
Individuals operating these scams also target rich people with black money who cannot deposit their funds in bank accounts or invest in any other assets.
Upon receiving the funds, the scam operators launder the cash in other countries, Sogani stated.
Between 2017 and 2019, Indian investors have lost almost $500 Mln to scams operated within India and abroad.
As reported earlier, scammers are targeting rich Indian businessmen to steal huge sums of cash in one fell swoop. Solely 2 such businessmen lost $50,000 and $3 Mln to crypto scams.
Sogani stressed that it had been crucial for Indian regulators to step into the cryptocurrency space and make laws which will safeguard cryptocurrency users from such scams. As cryptocurrency prices start to rise again, there’ll be more scams as people invest due to a fear of missing out. He said banning cryptos won’t solve the matter as people will still still invest directly in cash:
“I believe a compliance framework is important for all cryptocurrency projects willing to operate within India. Once that’s done, things will improve. Users will learn cryptocurrency and awareness will rise solely when the govt. tells them that this ecosystem is regulated.”