MBBS student loses Rs 44 lakh in crypto scam: Tips to protect yourself

Schemes promising high returns quickly are a red flag and must be avoided, according to experts

A medical student in Gwalior lost Rs 44 lakh when he was duped in a cryptocurrency investment scam on messaging app Telegram, marking another incident of fraud on social media.

 

The 23-year-old MBBS student was approached by scammers through a Telegram channel that promised high returns on cryptocurrency investments. The scammers contacted the student in January and gradually built trust by sharing professional-looking investment schemes and cryptocurrency trading strategies, according to media reports.

 

Separately in January, the Central Bureau of Investigation (CBI) registered a case against seven persons allegedly involved in a Rs 350 crore crypto-Ponzi scam. The accused operated in New Delhi, Hazaribag, Bathinda and other cities, luring people with promises of high returns through cryptocurrency investments.

 

“Cryptocurrency scams are on the rise, and it is essential to stay vigilant to avoid falling victim. One of the biggest red flags is the promise of high returns with minimal effort, as legitimate investments always carry some level of risk and no platform can guarantee profits,” Soumen Mohanty, partner, AQUILAW, a law firm.

 

“Fraudsters often operate through social media platforms, Telegram, and WhatsApp, luring victims into fake investment schemes or task-based earnings,” he said.

 

“To verify a cryptocurrency’s authenticity, visit trusted websites like CoinMarketCap or CoinGecko, where you can find details such as the cryptocurrency’s official website, Twitter handle, and more,” said Thangapandi Durai, chief executive officer of Koinpark (a global cryptocurrency exchange platform). “Before participating in any offer, always check official platforms to confirm its legitimacy. If you want to verify a platform’s social media handles, you can also find the official links at the bottom of their website.”

 

How to avoid cryptocurrency fraud

 

Himanshu Deora, partner, King Stubb & Kasiva, Advocates and Attorneys, said: “To avoid falling prey to such scams, individuals should be cautious of investment schemes that guarantee unrealistic profits and should always verify the legitimacy of trading platforms.

 

“Avoiding unknown Telegram or WhatsApp groups, not sharing sensitive financial details, and cross-checking investment opportunities with official regulatory bodies like Sebi or RBI can help prevent financial losses. In case of suspected fraud, victims should immediately report the incident to the cyber crime Portal (www.cybercrime.gov.in) or the nearest police station.”