India is stepping up its efforts to crack down on crypto-related scams by teaming up with tech giants Google and Meta (formerly Facebook), as outlined in the Ministry of Home Affairs’ 2024 annual report.
The primary focus of this initiative is to combat the increasing threat of “pig butchering” scams, a type of crypto investment fraud that targets vulnerable groups such as unemployed youth, housewives, students, and individuals facing financial difficulties.
These scams typically entice victims through social media platforms and search engines, promising high returns on crypto investments. In 2024 alone, investors lost over $3.6 billion to these fraudulent schemes, according to the report.
Scammers often pose as financial advisors or representatives of legitimate investment firms, gradually gaining the trust of victims before persuading them to transfer large sums of money into fake investment opportunities.
The Ministry highlighted that fraudsters exploit Google’s advertising services and Meta’s sponsored ads to promote malicious applications and phishing campaigns. To combat this, the Indian Cyber Crime Coordination Centre (I4C) has established protocols to collaborate directly with these platforms to identify and remove suspicious activities, block ads, and take down fraudulent content more efficiently.
As part of the collaborative effort, I4C actively monitors digital lending apps and Android banking malware that target vulnerable users. The center shares lists of phishing advertisers with Google for prompt removal and account suspension. Additionally, Meta assists in identifying and dismantling scam-related pages and illegal lending apps flagged by I4C.
In a significant move to protect users, Google Pay has been integrated into the Citizen Financial Cyber Frauds Reporting and Management System (CFCFRMS). This integration enables real-time detection of fraudulent transactions, allowing authorities to track and freeze assets involved in scams.
The report highlighted that this system saved over 16 billion Indian rupees and provided relief to more than 575,000 victims in 2023. To bolster these efforts, the Ministry is focusing on educating law enforcement agencies on blockchain analysis to trace illicit crypto transactions and seize digital assets linked to scams.
Nationwide training programs on crypto tracing and forensic analysis have been implemented to enhance investigative capabilities. The National Cybercrime Reporting Portal (NCRP) continues to be a crucial platform for citizens to report crypto scams, ensuring swift case resolutions.
Moreover, the Ministry established the National Counter Ransomware Task Force to collaborate with financial institutions, payment platforms, and crypto exchanges to mitigate large-scale cyber threats.
India is also actively engaging in international efforts, including cooperation with the Financial Action Task Force (FATF), to strengthen global standards for combating money laundering and terrorism financing involving cryptocurrencies. This international collaboration aims to address the cross-border nature of crypto-related crimes.
Overall, these collaborative measures between the government, tech giants, and law enforcement agencies are crucial steps in safeguarding investors and combating crypto-related scams in India.