India has taken strong measures to crack down on crypto-related scams by joining forces with tech giants Google and Meta (formerly Facebook), as detailed in the Ministry of Home Affairs’ 2024 annual report.
The main focus of this initiative is to combat the growing menace of “pig butchering” scams, a type of crypto investment fraud that preys on vulnerable demographics such as unemployed individuals, housewives, students, and those facing financial difficulties.
The report shed light on how these scams operate by enticing victims through popular social media platforms and search engines, offering unrealistic returns on crypto investments. In 2024 alone, investors fell victim to these scams, losing a staggering $3.6 billion.
Fraudsters often masquerade as financial advisors or representatives from legitimate investment firms, gradually gaining the trust of their targets before persuading them to transfer large sums of money into fraudulent schemes.
To combat this growing threat, the Indian Cyber Crime Coordination Centre (I4C) has established protocols to collaborate directly with Google and Meta in identifying and swiftly taking down suspicious activities, blocking ads, and removing fraudulent content.
As part of this joint effort, I4C closely monitors digital lending apps and Android banking malware that exploit vulnerable users. The center shares lists of phishing advertisers with Google, enabling the rapid removal and suspension of accounts. Meanwhile, Meta plays a crucial role in identifying and dismantling scam-related pages and illegal lending apps 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 allows for real-time interception of fraudulent transactions, empowering authorities to trace and freeze assets.
The report highlighted the success of this system in saving over 16 billion Indian rupees and providing relief to more than 575,000 victims in 2023. To further strengthen these efforts, the Ministry is focusing on educating law enforcement agencies on blockchain analysis, enabling them to trace illicit crypto transactions and seize digital assets involved in scams.
Moreover, nationwide training programs on crypto tracing and forensic analysis have been implemented to enhance investigative capabilities. The National Cybercrime Reporting Portal (NCRP) continues to serve as a crucial platform for citizens to report crypto scams, ensuring swift resolutions to cases.
Additionally, the Ministry has established the National Counter Ransomware Task Force, collaborating with financial institutions, payment platforms, and crypto exchanges to mitigate large-scale cyber threats.
India’s active involvement in international efforts, including collaboration with the Financial Action Task Force (FATF), aims to bolster global standards in combating money laundering and terrorism financing involving cryptocurrencies. This international cooperation seeks to address the cross-border nature of crypto-related crimes.
Overall, India’s collaborative efforts with tech giants Google and Meta, alongside the implementation of various measures to combat crypto-related scams, demonstrate the country’s commitment to safeguarding its citizens from financial fraud and cyber threats.