In recent years, India has attracted millions of investors to the crypto industry. While many initially hesitated to engage in this relatively new asset class, with rising hype and FOMO around cryptos, many have jumped on the bandwagon.

Unfortunately, investors weren’t the only ones drawn by this rapid growth. There were numerous fraudsters and scammers who plotted diabolical schemes to drain the funds of traders and investors.

The fact that crypto scams are becoming more intricate over time is a serious issue. It is more challenging for investors to protect their funds since scammers employ a variety of tactics, such as phishing scams, fake websites, fake tokens, etc.

Although governmental organizations and well-known crypto exchange platforms are working hard to eliminate such frauds by raising awareness, the anticipated outcomes haven’t been achieved.

Hence, with this article, we have prepared a list of common scams you need to know to become more aware and save your funds from scammers and fraudsters.

Common Crypto Scams Happening in India

#1 Creating fake crypto websites

As the crypto industry has gained popularity, so does the scams happening around it. One of the latest crypto scams that are going around is the emergence of fake websites that aim to dupe investors and collect their funds. These fraudulent websites imitate themselves as legitimate crypto exchanges, luring crypto investors with promises of high returns or great investment opportunities. It is very important for crypto investors to be aware and remain cautious to protect themselves from falling prey to these scams and frauds.

Fake crypto websites can be highly convincing and use sophisticated techniques to deceive users. They create an illusion of credibility by using similar domain names, company logos, and website designs as reputable platforms.

What do they do? These websites request users to make deposits, provide sensitive information, or participate in fraudulent investment schemes. Once users fall into the trap and transfer their funds or disclose personal details, the scammers disappear, leaving victims by draining all their funds.

What can you do? To protect yourself from falling prey to this scam, always do due diligence before engaging with any crypto-related website. Verify the platform’s authenticity by checking the user reviews, its reputation, and official licenses or regulatory compliance. Never trust a website that makes unrealistic promises or pressures you to act quickly.

At WazirX, keeping your WazirX account and funds safe is always our topmost priority. And with this in mind, we maintain a list of all the fake websites that impersonate themselves as WazirX. Check here!

#2 Rise of fake tokens

Another common scam that is on the rise is fake tokens, where scammers create illegitimate digital tokens to dupe users and trick them into giving away their legitimate cryptos. The usual target of these scammers is novice investors who are not thorough in verifying the authenticity of the tokens and other legal information associated with them. It is crucial for crypto investors to exercise caution and implement proper security measures to safeguard their assets from falling into the hands of scammers.

What do they do? Scammers usually create tokens that resemble well-known and established cryptos, leveraging their names and branding to gain credibility. Then, they may distribute these tokens through various channels, such as social media platforms or fake websites, and encourage users to exchange their legitimate cryptos for these fake tokens.

What can you do? To protect yourself from this scam, it is crucial to be diligent and conduct thorough research before engaging with any token or investment opportunity. Verify the authenticity of the project, check the contact addresses provided, and cross-reference information with official sources. Also, you should stay cautious when sharing your wallet address or engaging in transactions, as scammers can exploit this information to gain unauthorized access to your legitimate cryptos.

#3 Phishing attacks

In today’s digital world, where online platforms are a part of our daily lives, the threat of phishing attacks looms large. Phishing attacks are a common tactic fraudsters use to trick crypto investors into revealing their sensitive information, such as login credentials or financial details, and subsequently execute unauthorized transactions. These attacks exploit the trust and vulnerability of crypto users, aiming to gain access to valuable digital assets.

What do they do? Fraudsters often create fake websites or send deceptive emails and messages that mimic legitimate crypto platforms, luring users into entering their login credentials. After obtaining them, they get access to users’ crypto wallets, enabling them to carry out fraudulent transactions and transfer funds to their accounts.

What can you do? It’s important to be cautious and follow strict security practices to safeguard yourself from phishing attacks. Try to verify the authenticity of the website or platform before entering sensitive information, such as login credentials or private keys. Double-check the website URL, look for secure connections (HTTPS), and keep a keen eye on any unsolicited messages or emails requesting personal information.

Bottomline

India’s booming crypto industry has attracted both investors and scammers. With the rise of crypto scams like fake websites, fake tokens, and phishing attacks, investors should remain cautious about protecting their funds and sensitive information. It’s advisable to verify the authenticity of platforms, having thorough research, and staying vigilant against scams. Be an informed investor and practice robust security measures to safeguard yourself and your funds from fraudsters.

Disclaimer: Cryptocurrency is not a legal tender and is currently unregulated. Kindly ensure that you undertake sufficient risk assessment when trading cryptocurrencies as they are often subject to high price volatility. The information provided in this section doesn't represent any investment advice or WazirX's official position. WazirX reserves the right in its sole discretion to amend or change this blog post at any time and for any reasons without prior notice.