Cyber Criminals Trap Bitcoin Investors – Says Senior Crime Branch Officer

As more and more of investors choose to take digital currencies like bitcoin, leading to a huge rise in its price after the demonetization policy, cyber criminals are also using innovative ways to grab virtual wallets.

A Delhi-based businessman on last week lost Rs.8.5 lakh to a ‘bitcoin miner’ which is a term used for the agents who generates digital currency has promised the businessman ten bitcoins with an assurance that his investments will raise in double within next six months.

Even though there are varied views on the digital currencies transactional legality, it is not recognized by the Reserve Bank of India, so the businessman chooses not to file a complaint against the bitcoin miner with the police.

Cyber Criminals targets Bitcoin

Fraud related to bitcoins are becoming more frequent these days because of growing Bitcoins market in India. Investors choose bitcoin for investment purpose.

A senior crime branch officer has said that the cases of fraud related to bitcoins are becoming more frequent these days. It is probably because of many global companies started to accept the digital currency. The expansion of bitcoins has attracted many new investors. However, cashing on its rising popularity, some cyber criminals are also running fraud set-ups.

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After the demonetization policy announced in November 2016, demand on bitcoins has gone up in the country. The previous generation invested more on buying gold and now, today’s tech-savvy investors choose bitcoin for investment purpose. The officer has said that it is a big nuisance for them to crack such cases as these currencies are not tangible.

Bitcoin

Bitcoin is a crypto digital currency that is generated on the computer and not printed or minted physically like a country’s currency. The denomination of bitcoin is created and held electronically in a decentralized system which means no single person, bank or authority has any regularity of control over it.

Bitcoin Investors - cyber criminals

Tracking these virtual currencies is difficult on the web, and beyond a country’s boundaries, it is impossible to track says Superintendent of Police, Triveni Singh.

It can be used for trades worldwide, and it works as conventional forms of currency. According to India’s leading Bitcoin trading exchanges, in the last one year, there has been a rapid use in its user base by 250 percent.

Cyber criminals are also reaching out to new investors for dealing into other cryptos digital currency than bitcoin which includes OneCoin, TimeKoin OneCoin, LitecoinNuBits, Tether, etc. On the internet Bitcoin is a new currency where anything can be bought using it, such as arms, drugs, pornography.

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Additional Superintendent of Police, Triveni Singh (Uttar Pradesh STF) said that even hackers demand digital currencies in ransomware attacks carried in India. Tracking these virtual currencies is difficult on the web, and beyond a country’s boundaries, it is impossible to track.

A bitcoin expert Hitesh Malviya says apart from bitcoin, there are other 2000 plus lesser-known virtual crypto-currencies and there are several cases of fraud related to virtual currencies these days. Experts also claim that Indians are mostly interested in buying bitcoins and not selling them in the market to increase its valuation. The department also alleges that after the demonetization announcement, many traders in India exchanged their ‘black money’ for bitcoins.