An Indian businessman from Ahmedabad has lost Rs. 1.92 crore ($221,000) in a sophisticated cryptocurrency scam orchestrated through Facebook. The 48-year-old fell victim to an elaborate fraud that exploited social media trust and investment promises, authorities said.
The scam began in August 2024 when the businessman received a friend request from a woman who claimed to be involved in the gym equipment business with operations in Dubai and Mumbai. The conversation quickly moved to WhatsApp, where the woman introduced him to a cryptocurrency investment opportunity. She alleged that her uncle was a senior officer at an American firm managing the investment platform and assured him of high returns. Encouraged by an initial small profit, the businessman continued investing, ultimately depositing Rs. 6 crore ($692,000) before realizing he had been defrauded.
Scam’s Progression and Victim’s Financial Losses
According to the cybercrime complaint, the businessman initially invested $500 and received a $250 profit. Convinced of the platform’s legitimacy, he increased his investments. Over time, his total deposits grew to Rs. 6 crore, a significant portion of which he attempted to withdraw. However, when he requested a payout, he was told to pay a 20% tax upfront. This was not mentioned earlier, raising his suspicions.
Attempts to contact the woman were unsuccessful. Soon after, the investment platform ceased all communication, confirming the businessman’s fears. Despite trying to retrieve his money, he was only able to recover Rs. 92,000 from the total Rs. 1.92 crore he had personally invested before approaching authorities.
Cybercrime Authorities Launch Investigation
The Ahmedabad Cybercrime Unit has registered a case under charges of criminal conspiracy, cheating by impersonation, and criminal breach of trust. Authorities are investigating the fraudulent investment platform and working to trace those responsible.
Law enforcement officials warn that similar scams have been increasing, targeting individuals unfamiliar with cryptocurrency investments. Scammers often lure victims by demonstrating small, initial profits before coercing them into larger deposits. Once victims realize they have been defrauded, the perpetrators cut communication and disappear.
Authorities have advised the public to exercise caution when engaging with financial opportunities on social media. Cryptocurrency investors are urged to conduct thorough research and use only established, regulated platforms to mitigate risks. Investigators believe this case highlights the urgent need for stricter regulations and increased awareness to prevent further financial frauds.
