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Beware of Bitcoin Trading Scams: Mumbai Woman Loses Rs 13 Lakh to Fraudsters

Kandivali Mumbai Woman Loses Rs 13 Lakh to Bitcoin Trading Scam - Stay Alert and Safeguard Yourself from Falling Victim to Similar Scams

In a distressing incident, a 53-year-old housewife from Kandivali Mumbai fell prey to a bitcoin trading scam, losing over Rs 13 lakh to fraudsters, according to the report published by local news agency Mid-Day. The modus operandi employed by the conmen involved adding unsuspecting victims to WhatsApp groups focused on business trading, where they were deceived into believing that substantial profits could be made through bitcoin trading. This unfortunate incident sheds light on the growing prevalence of such scams and the need for individuals to exercise caution while engaging in online financial activities.

According to the victim's statement to the police, she was added to a WhatsApp group named 'BTC Trading Group 111-5' without her consent. Although she initially intended to leave the group, she noticed numerous discussions among the group's 250+ members regarding bitcoin trading, accompanied by screenshots of impressive investment returns. Intrigued and convinced by the prospects, she expressed her interest in investing in bitcoin.

Within the group, members mentioned a company called 'A16Z' that supposedly facilitated lucrative trading opportunities. Seeking to verify its reliability, the woman conducted an online search and found positive information, including its establishment in 2009 and a track record of investors earning significant profits. Consequently, she engaged in a conversation within the group chat, expressing her willingness to trade. Subsequently, the group shared a link requesting relevant information from her.

Upon submitting the requested details, the woman was added to another WhatsApp group named 'Bitcoin Contract VIP22-1.' This group displayed graphical representations of bitcoin investments, illustrating the fluctuations in value over time. Following this, she created an account on the Binance app and acquired some dollars. Additionally, she opened an account with a 'LON App' and commenced investing through a dedicated app recommended by the fraudsters.

As per her statement, the woman invested over Rs 5.5 lakh, and her app wallet displayed a profit of more than Rs 24 lakh within a couple of days. However, when she attempted to transfer the amount to her bank account, she was instructed to pay 30 percent as tax, totalling approximately Rs 7.5 lakh, before receiving a tax certificate and authorization for the transfer. Trusting the fraudsters, she complied with their demands but ultimately did not receive the promised tax certificate or the amount owed to her.

The Kandivali police have registered a case against the perpetrators under sections 419 and 420 of the Indian Penal Code, along with sections 66C and 66D of the IT Act. Investigations are currently underway to apprehend the criminals involved in this scam.

This incident serves as a cautionary tale, highlighting the increasing prevalence of scams targeting innocent individuals seeking financial opportunities. To avoid falling victim to such fraudulent schemes, it is crucial to exercise vigilance and adhere to the following preventive measures:

  1. Research thoroughly: Before engaging in any financial activity, conduct comprehensive research about the company, platform, or app involved. Verify their credibility, reputation, and history of successful transactions.

  2. Be skeptical of unrealistic promises: Scammers often entice victims with promises of exorbitant profits within a short period. Exercise caution and avoid deals that appear too good to be true, as they usually are.

  3. Secure your personal information: Never share sensitive personal or financial details with unknown individuals or entities. Legitimate businesses rarely require extensive personal information upfront.

  4. Utilize trusted platforms: Opt for well-known and established platforms for cryptocurrency trading. Research user reviews, ratings, and security protocols before entrusting your investments to any platform.

  5. Verify tax requirements independently: In situations where tax deductions are mentioned, verify the legitimacy independently.


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