Indian fraudsters have intensified their activities by targeting retirees with various fake cryptocurrency trading applications. Authorities have identified this demographic as prime targets due to their age and limited understanding of how cryptocurrencies operate.
The elderly population is often enticed by the prospect of easy profits presented by scammers. These fraudsters exploit the desperation and gullibility of their victims to extract funds until victims are unable to make further payments.
In many instances, elderly victims only realize they have been scammed when the fraudsters cease communication and take down the application used to monitor their supposed earnings.
Details of Fake Crypto Trading Schemes
According to the Indian police, one of the initial cases this year involved a 64-year-old retired banker from Secunderabad. This individual reported losing over Rs. 1.25 crore (approximately $137,000) to fraudsters operating a bogus crypto trading scheme through a platform named "Capstone."
Authorities indicated that this fraud occurred between December 29 and January 12, and was discovered only after the scammers disappeared with the victim's funds.
The retired banker reported receiving an invitation to join a WhatsApp group called ‘Team B Club Internship Group 39.’
Within this group, members shared screenshots purportedly showing significant gains from investments made on the platform. Some claimed these gains were from cryptocurrency trading, while others stated they were from institutional IPO trades. The retired banker was instructed to download the Capstone application using a link provided by a United States phone number.
After downloading and setting up the application, the victim reportedly made approximately 15 transfers from three personal accounts to about 11 bank accounts provided by the scammers. These payments were allegedly made to facilitate greater profits from his investments.
The in-app dashboard displayed his balance increasing to Rs. 1.9 crore. However, every attempt to withdraw funds was blocked. The fraudsters then demanded an additional Rs. 58.58 lakh as clearing charges.
The Indian police stated that after extended negotiations with the scammers to help him withdraw his funds, the victim realized he had been defrauded and subsequently reported the incident. The case was registered on January 14. By the following day, the Hyderabad and Cyberabad Cyber Crime Police stations reported receiving more than three similar complaints, with a combined loss exceeding Rs. 1.2 crore.
Police Urge Citizens to Seek Professional Guidance
In another similar case, the Indian police reported that a 68-year-old retired employee from Manikonda lost over Rs. 50.8 lakh to scammers who posed as analysts from a stock brokerage company.
The victim was lured into a WhatsApp investment group and asked to register on a platform. He also downloaded an application to track his earnings. However, by the time he attempted to withdraw his funds, the scammers had absconded with his money.
In a third incident, police noted that a 76-year-old retired employee from Secunderabad claimed to have lost Rs. 46.25 lakh to fraudsters posing as stock market trading experts. They had advised him to invest in IPO trades between December and January. Following several investments, the scammers stole the funds.
A fourth case involved a 45-year-old retired employee who lost Rs. 32.1 lakh to fraudsters claiming he could invest in US stocks using their applications.
All four incidents have been formally registered, according to the Indian police. They have issued a warning to the elderly population, advising them to avoid investing in opportunities that seem too good to be true. The police strongly recommend involving a younger individual with practical experience in the crypto industry if choosing to invest in such assets. Furthermore, they urge the public to seek professional help when entering the crypto industry to prevent falling victim to fraudulent schemes.