India has stepped up its measures to combat crypto-related scams, collaborating closely with tech behemoths Google and Meta (formerly known as Facebook). This strategic initiative has been outlined in the Ministry of Home Affairs’ 2024 annual report, with the objective to thwart the escalating menace of “pig butchering” scams. This form of crypto investment fraud has been particularly predatory towards vulnerable groups, including unemployed youth, housewives, students, and those grappling with financial hardships.
The report provides a detailed account of these scams, which typically ensnare victims through social media platforms or search engines with promises of high returns on crypto investments. This scheme has been alarmingly successful, leading investors to lose over $3.6 billion to such scams in 2024. The fraudsters often impersonate financial advisors or representatives of legitimate investment firms, slowly building trust before persuading victims to pour large sums of money into fraudulent schemes.
The Ministry’s report underscores the misuse of Google’s advertisement services and Meta’s sponsored ads by these fraudsters to launch harmful applications and phishing campaigns. To counteract this, the Indian Cyber Crime Coordination Centre (I4C) has established protocols to liaise directly with these platforms. It aims to spotlight suspicious activities, block ads, and expedite the removal of fraudulent content.
I4C’s efforts include diligent monitoring of digital lending apps and Android banking malware that exploit susceptible users. Google is provided with lists of phishing advertisers to enable swift removal and account suspension. In parallel, Meta plays a pivotal role in identifying and dismantling scam-related pages and illegal lending apps as flagged by I4C.
In a significant move to safeguard users, Google Pay has been integrated into the Citizen Financial Cyber Frauds Reporting and Management System (CFCFRMS). This integration enables real-time interception of fraudulent transactions, facilitating authorities to trace and freeze assets. This system reportedly saved over 16 billion Indian rupees and provided relief to over 575,000 victims in 2023 alone.
The Ministry has also prioritized educating law enforcement agencies on blockchain analysis, equipping them with the expertise to trace illegal crypto transactions and seize digital assets involved in scams. Nationwide training programs on crypto tracing and forensic analysis have been rolled out to augment investigative capabilities.
The National Cybercrime Reporting Portal (NCRP) continues to serve as a crucial platform for citizens to report crypto scams, ensuring quicker case resolutions. The Ministry has also set up the National Counter Ransomware Task Force, which collaborates with financial institutions, payment platforms, and crypto exchanges to counter large-scale cyber threats.
The report further highlights India’s active engagement in international efforts, including collaboration with the Financial Action Task Force (FATF), to fortify global standards for combating money laundering and terrorism financing involving cryptocurrencies, thereby addressing the transnational nature of crypto-related crimes.
