India: Crypto Traders Are Being Accused Of Bank Frauds
It has come to light that few Banks & PayTM have frozen accounts of several people across different states of India for receiving money from an account which was allegedly hacked in a unique case where a hacker is said to have forged identities on well known exchanges and engaged in fraudulent transactions.
This action was taken in wake of FIR lodged by "iserveu Technology" in Bhubaneswar u/s 420 IPC & 66C,66D of ITA according to the tweet from CryptoKanoon with cases being dealt by their legal advisor Mohammed Danish.
Now there's a video that tells you exactly how the hacker operates and it's shocking to understand how the processes of exchanges that we trust have failed us.
Modus Operandi of the hacker is quite simple. He uses Fake ids and does KYC on Indian exchanges. Then using hacked bank + hacked PayTM accounts to transfer money to sellers of USDT/Crypto on P2P exchanges and makes a run with as much crypto into their wallets as possible.
Once the sale is complete, the seller is happy to have received the money only to have their account frozen by the bank at a later date and an FIR lodged against them.
The complete details is in the video below and highly recommend you to watch it.
While no exchanges have been named in particular it's quite easy to figure out from the video which ones been used by this hacker for his fraudulent activities.
Infact, I've noticed unnaturally high USDT buy rate matches on a certain Indian exchange during trading in the past 2 weeks when selling some USDT for INR. Ofcourse, that doesn't mean anything but the values mentioned in the videos is something I've witnessed during the time I was trading.
Luckily I didn't set any sell orders at those prices and so far I haven't faced any issues.
Anyway, please watch the following video from CryptoKanoon completely. It is in Hindi and if you have any issues understanding any part of it feel free to ask me questions in the comments and I will answer.
How to safe guard yourself against such eventualities is a question that's probably on your mind at the moment. I will try to answer them in another post.
If you like my work kindly resteem it to your friends. You may also continue reading my recent posts which might interest you:
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Quite a dangerous scenario. Never expected such an attack vector!
@scienceblocks see this man
OMG, it's literally a S***Storm out there. I was literally one Day away on Selling some SBD's on LocalBitcoins. Even though I would have traded with a Guy I trade always but I will still hold on the selling of my SBD's for now.
This is exactly why there should be proper Regulations. We never encountered these Problems when we dealt directly with exchanges. It's hard to say this but the P2P Model is kind of a Haven for Scammers.
I hope the Supreme Court declares their Decision soon as I feel it is high Time India get's their own Crypto Regulations in Place.
Pretty nasty scam! It could bring a lot of trouble if it would happen to you, damn.
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Hey @firepower, can you help @steemindian to give better upvotes to Indian community by delegating atleast 40sp.
Thank you.
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These scammers must be punished badly and must set an example so that others think 100 times to dare it but at the same time we also need to be careful. Thanks for sharing @firepower
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So KYC regulations don’t work. Got it. :)
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Bro how to get added in ocdb whitelist?
There's currently no ongoing application process, it's pure one-way. OCD have a number of curators who look for 'quality' content to curate. If your content is curated you get on the whitelist automatically.
This post will give you some further info (pls note application is not currently open): https://steemit.com/ocd/@ocd/ocdb-whitelist-application
@acidyo is the best person to answer this question. :)
This sounds pretty bad! This not only raises question on exchanges but also brings to light the weakness in security of banks and paytm. Like how is even so easy to hack them? Which also makes you wonder about the claims like - "crypto is linked with monetary crimes" Looks more like money is linked with monetary crime, irrespective of the form.
The next point of weakness lies in verification process of exchanges. They should ask for the person who claims to submitting the photo ID should take a picture/video while holding the photo ID. Say/write on piece of paper their name, ID number, exchange name and date in that video/picture. And instead of giving instant verification the exchange should take its time and verify authenticity of document further.
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Horrible. Digitalization is good but some time it will be dangerous. We should take care of it.