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Bengaluru techie loses whopping Rs 95 lakh in crypto scam: Decoding scammers' tricks & how to avoid it

A Bengaluru engineer lost Rs 95 lakh in a cryptocurrency scam, highlighting prevalent tactics like pump-and-dump, fake ICOs, phishing, and Ponzi schemes. Tips to avoid: skepticism towards high returns, verifying project credibility, avoiding urgent demands, using reputable platforms, and noticing red flags in communication.

Bengaluru techie loses whopping Rs 95 lakh in crypto scam: Decoding scammers' tricks & how to avoid it vkp
First Published Dec 25, 2023, 12:05 PM IST

A troubling incident has emerged involving a 53-year-old Bengaluru engineer who fell victim to a cryptocurrency scam, losing a significant sum of Rs 95 lakh. The scammer persuaded the engineer to invest in bitcoins, promising high profits. 

These scams are designed to trick investors into giving away their cryptocurrency or personal details. Taking advantage of the desire for quick profits and the complexity of cryptocurrencies, scammers use different tricks to manipulate people who aren't aware.

1. Pump-and-Dump Scams: Scammers inflate cryptocurrency prices, create hype, and then sell quickly, causing prices to crash and leaving investors with worthless coins.

2. Fake ICOs (Initial Coin Offerings): They promise big returns on a new cryptocurrency project that doesn't exist, taking away the money invested.

3. Phishing Scams: Scammers pretend to be real crypto platforms through emails or texts, tricking users into sharing their login details to steal their cryptocurrency.

4. Ponzi Schemes: These offer high returns but rely on new investors' money to pay old ones, eventually collapsing.

Here are tips to avoid falling for these scams:

- Don't believe in investments that promise huge returns without risks.
- Be cautious of projects that hype up but lack credible technology or team support.
- Beware of urgent demands from scammers; they rush you without allowing proper research.
- Invest only through known and trustworthy cryptocurrency platforms.
- Stay cautious if you find poorly written materials or unprofessional communication in projects.

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