Indian police have arrested five people, including one woman, for scamming a businessman out of $700,000 through a fake cryptocurrency trading app. Couched as communication with a well-known Japanese exchange called ZAIF, the scammers tricked the prospective investor into investing millions of dollars.
The fraud was started by a woman who contacted the businessman on Facebook under the pretence of being a software developer from Hong Kong. He convinced him to put money in a crypto platform that said it would bring rates in the range of 200%. The businessman transferred more than INR 6 crore (approximately $699,352) into the accounts controlled by the scammers over a month.
The fake app was at first making him profit believing he’s earning money. However, when he went to withdraw it, the scammers requested INR 89 lakh extra to unlock the money. They disappeared without a trace, when he refused.
Fortunately, the Indian police were able to track down the culprits using digital records, as well as bank transactions. In a raid, they found phones, SIM cards, the ID documents of those killed as well as other evidence.
It isn’t the first time India has fallen victim to a crypto scam. Pastly 8 persons were arrested for fraud which tricked 5,000 investors to lose $244,000. As crypto scams increase, authorities are advising people to be cautious and keep away from deals that sound too good to be true.
If a deal is supposed to bring a huge profit soon then you can be sure that you are dealing with a scam. It is always advisable to conduct proper research before investing!
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