🌎 India Combats Cryptocurrency Scams

India Combats Surge in Pig Butchering Scams Involving Cryptocurrencies

India has joined forces with tech giants Google and Facebook to tackle a recent surge in pig butchering scams, which often utilize cryptocurrencies to lure victims and launder stolen funds. According to the 2024 annual report from the Indian Union Home Ministry, these scams target “unemployed youths, housewives, students, and needy people,” taking advantage of their financial insecurities and trust to entice them into fraudulent schemes promising quick and substantial returns.

The report notes that victims are losing large sums of money, including borrowed funds, on a daily basis. Scammers are increasingly using Google’s advertisement services and messaging platforms like Whatsapp and Telegram to promote these scams.

Combating Pig Butchering Scams

The Indian Cyber Crime Coordination Centre has joined hands with Google and Facebook to proactively flag related activities, such as malicious advertisements, detect fraudulent digital lending apps, and identify phishing campaigns linked to these scams.

Additionally, crypto exchanges have been integrated into the Citizen Financial Cyber Frauds Reporting and Management System, enabling faster detection and blocking of suspicious cryptocurrency transactions. This platform serves as a centralized hub where law enforcement agencies, financial institutions, payment wallets, and crypto platforms collaborate to prevent the illicit flow of funds.

Specialized Training and Oversight

Specialized cryptocurrency investigation training sessions are being conducted nationwide to equip police officials with skills to trace crypto transactions, seize digital assets, and analyze blockchain evidence.

With a high grassroots-level adoption rate, India has been a prime target for crypto fraud rings, often operated from outside the country. Authorities have actively worked to increase oversight of the currently unregulated sector. In 2023, India’s Financial Intelligence Unit mandated that crypto exchanges must register as a reporting entity to operate in the country.

Recent Enforcement Actions

The Enforcement Directorate, India’s economic intelligence agency, has cracked down on several high-profile incidents of fraud, including:

In June 2024, the ED froze over $3 million in assets linked to the Highrich group crypto Ponzi, which promised returns of up to 15% on investments into a fake cryptocurrency.
Just months later, the agency dismantled another fake cryptocurrency, which led to losses of upwards of $800,000.