Cryptocurrency has become an attractive investment destination for many youngsters. However, crypto scams, ransomware attacks, and hacks have been on the rise as well. According to the latest news, a group of youngsters in Hyderabad were duped and have lost all their crypto investments.
Moreover, their investment was worth INR 16 Lakhs. According to Police statements, one of the youngsters came into contact with a person on social media site, Facebook. Furthermore, the person suggested the youngster to invest in cryptocurrency.
Youngster Trusted The Stranger And Invested In Cryptocurrency
After establishing contact with the unknown person, the youngster was advised to invest in digital assets. Also, the scammer urged him to download a particular crypto trading app.
The Hyderabad-based youngster believed the stranger and followed his instructions. Soon he started investing his money into cryptocurrency. Initially, he received profits on his investments and started making some major gains.
Moreover, the youngster then started informing his friends about his crypto gains and advised them to invest as well. After this, his friends started pooling in their money and entered the crypto market.
However, after some time, the group realized that something was amiss. The profits they made stopped showing in their account. Shortly afterwards, they decided to approach the cyber crime police in Hyderabad and registered a case. As of now, a police investigation is underway.
Crypto Crimes Have Reached An All-Time High
According to a report by chainalysis, crypto crimes have reached an all-time high. In 2021 alone, hackers have made more than $14 billion in cryptocurrency. Accordingly, this marks a whopping 79% increase in crypto crimes when compared to 2020.
The report further states that an increase in crypto crimes could mean that governments might start regulating the crypto asset.
According to the Financial Conduct Authority in the UK, crypto investors’ general understanding about the digital asset is very low. The regulator says, “Despite more people having heard about cryptocurrency, the overall understanding has fallen.”
Moreover, the regulator adds, “This suggests there may be a risk of consumers engaging with cryptocurrency without a clear understanding of it.” Also, lack of crypto knowledge is a global problem.
Furthermore, BinBits earlier has reported that Indians account for at least 10 million visits to scam crypto websites. The latest crypto scam of the Hyderabad youth is another addition to the list of scams related to crypto.