Cyber criminals go digital, lay bitcoin trap for investors – India Today

Cases of fraud related to bitcoins are becoming more frequent, officer said.

Bitcoin is a digital crypto-currency that is computer generated and not printed

Experts also claim that people in India are mostly interested in buying bitcoins

As more and more investors take to digital currencies like bitcoin, leading to a sharp rise in their prices postdemonetisation, cyber criminals are also exploring innovative ways to pick virtual wallets.

Last week, a Delhi-based businessman lost Rs8.5 lakh to an alleged 'bitcoin miner', the term used for an agent who generates digital currency, who promised him 10 bitcoins with an assurance that the investment will rise twofold within next six months. The businessman chose not to file a complaint with police as digital currencies are not recognised by the RBI, even though there are varied views on its transactional legality.

"Cases of fraud related to bitcoins are becoming more frequent," a senior crime branch officer told Mail Today. This is partly because many global companies have started accepting digital currency. "This has attracted many new investors. However, cashing on its rising popularity, some scamsters are also running fraud set-ups," said the officer, requesting anonymity.

"After demonetisation in November 2016, demands of bitcoins have gone up in the country and what gold was to the previous generation, bitcoin is to today's tech-savvy investor," he said, adding that it will be a big nuisance to crack such case as these currencies are not tangible.

WHAT IS BITCOIN

Bitcoin is a digital crypto-currency that is computer generated and not printed or minted physically like a country's currency. The denomination is created and held electronically in a decentralised system which means no single person, bank or authority has any regulatory control over it. It works as conventional forms of currency and is traded worldwide.

According to leading Bitcoin trading exchanges in India, there has been an increase in its user base by 250 per cent in last one year. Scamsters are also reaching out to new investors for dealing into other crypto-currency than bitcoin which includes TimeKoin, OneCoin, LitecoinNuBits, Tether etc.

"It is a popular currency on the internet where anything can be bought using bitcoins such as drugs, arms, pornography.

Even hackers demand digital currency in ransomware attacks carried in India. But, tracking crypto-currency is difficult on the web and beyond a country's boundaries is impossible," said Triveni Singh additional Superintendent of Police (Uttar Pradesh STF).

"Apart from Bitcoin, there are other 2,000 plus lesser-known virtual currencies and there are several cases of fraud related to virtual currencies these days," said Hitesh Malviya, a bitcoin expert.

Experts also claim that people in India are mostly interested in buying bitcoins and not selling them in the market in order to increase its valuation. Cops also claim that after the demonetisation announcement, many traders exchanged 'black money' for bitcoins.