Fake Crypto Exchanges Dupe Indians Out of $128 Million;  Binance Emphasizes Investor Education

Fake Crypto Exchanges Dupe Indians Out of $128 Million; Binance Emphasizes Investor Education



Cybersecurity firm CloudSEK revealed in a recent report that Indian investors have lost millions of dollars to fake crypto sites and apps as a result of current market weakness.

Rahul Sasi, Founder and CEO of CloudSEK, told IANS, “We estimate that threat actors have defrauded victims of up to $128 million (approximately Rs 1,000 crore) via such crypto scams.”



Soaring Investor Interest Is Attracting Bad Actors

The company was reportedly approached by some of these victims. Sasi added, “As investors focus on the cryptocurrency markets, scammers and cheaters are also turning their attention to them,”

The report points out: “This large-scale campaign lures unwary individuals into a massive gambling scam. United.

Organized crime is conducted through phishing domains and fake crypto apps. Previously, the AI ​​firm noted that “there is no policy requiring service providers to monitor or remove malicious URLs,” which puts the responsibility for online security on users.

Sasi said, “In the long term, it is imperative that collaboration between crypto exchanges, Internet Service Providers (ISPs) and cybercrime cells raise awareness and take action against threat groups,”

Crypto Ads and Phishing Sites

Last year, Check Point Research (CPR) also explained in its findings that search engine advertisements were effectively targeting crypto wallet users, stealing wallet passwords to access crypto funds. Additionally, the CPR had also discovered that several phishing websites looked like exact replicas of the original websites. For example, the “phantom.app” which is the official Phantom wallet website had fake phishing variants like “phanton.app” or “phantonn.app”, or even with different extensions, according to the CPR.

Meanwhile, CloudSEK also draws attention to scam trends on social media platforms by impersonators. The report revealed, “The profile also shares a $100 credit, as a gift to a particular crypto exchange, which in this case is a duplicate of a legitimate crypto exchange,”

Notably, bad actors convince users of substantial gains on their initial investments but freeze accounts upon attempted withdrawals. The report adds: “To recover the frozen assets, they ask the victims to provide confidential information such as identity cards and bank details, by e-mail. These details are then used to perpetrate other nefarious activities,”

Binance promotes crypto education to fight scams

In a recent interview with the Financial Express, Tigran Gambaryan, VP, Global Intelligence and Investigations at Binance, highlighted how the largest volume exchange suggests tackling crypto scams.

Gambaryan told the newspaper: “Information and education are among the best defenses against fraud and scams.”

“Bridging the knowledge gap is a critical factor when it comes to crypto. Users have the right to obtain accurate information about crypto assets, without fear of falling victim to unfair or misleading advertisements,” he added.


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