If a dithering government, a vacationing court, and an unfriendly central bank weren’t bad enough, India’s embattled cryptocurrency ecosystem is now staring at another problem—a spate of crimes. The most prominent scam involving digital currencies in the country began unraveling in 2017 after investors complained against Amit Bhardwaj, founder of cryptocurrency firm GainBitcoin.

The company had allegedly duped 8,000 investors of Rs2,000 crore ($300 million), and now British businessman Raj Kundra and other Bollywood celebrities, too, have been dragged into the mess. In the early days, as cryptocurrencies caught on in India, frauds were limited to phishing and hacking.

Then, came multi-level marketing schemes. Now virtual money is even being demanded as ransom.

Phishing and hacking: It is one of the oldest tricks in the book. An email is sent from a seemingly genuine address, asking users to click on a link and/or fill in details.

These links usually contain malware that affects the systems and clones the investors’ data, robbing them of their funds. In other cases, a hacker may hold the important files on your system as ransom, until they are paid in cryptocurrencies. Read more from qz.com…

thumbnail courtesy of qz.com