Cryptocurrency boom fuels rise in cybercrime: What you need to know

The new age, digital investments, especially investments in cryptocurrencies are rapidly growing among youngsters. But, with huge profit returns also comes higher risks. With the evolving investment patterns, the change in cyber crimes have also become a challenge for the market as Mumbai-based cyber experts say that in the ever-evolving landscape of cybercrimes, a troubling trend has emerged, targeting unsuspecting users with enticing offers that lead to financial deception.

Earlier this month, Anju Maskeri, a Mumbai-based media professional's Instagram was hacked and she got an alert from a friend who received a direct message from her Instagram account asking her to share a code or a link she receives. In no time, she realised her Instagram account was hacked.

Speaking to mid-day.com, Anju said, "My Instagram and Facebook accounts were recently hacked, and I was locked out of both. My friends kept me updated that the hacker was posting wildly about how I had earned Rs 6 lakh or so using bitcoins within a week. It was pretty obvious to most of my followers that it wasn't me. The scary part was that the hacker had activated the two-factor verification, and my reset codes were being sent to them. Thankfully, with help from Meta I was able to retrieve it within two days."

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Cyber experts say that with the changing trends of investments, the crimes have also evolved.

Cyber crime investigator, Ritesh Bhatia said, "These task-based scams often begin innocently, promising users a quick reward of Rs 150 in exchange for simply liking or subscribing to online videos or reels. However, the bait quickly transforms into a trap, as victims are coerced into joining Telegram groups where they are convinced to invest in cryptocurrency trading for supposedly greater and faster returns. Unscrupulous actors further propagate their deceit by creating fraudulent websites and apps that showcase phantom crypto gains, duping individuals into parting with their hard-earned money. As the digital realm continues to evolve, vigilance and awareness need to be our strongest defences against these sophisticated cybercriminal tactics."

He further suggested, "I firmly advocate that the most effective measures for protecting oneself against cybercrimes involve pausing before any action, embracing a strict policy of zero trust in the digital realm, and, lastly, ensuring diligent verification."

Young investors bet on Crypto's promise of high returns

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As many youngsters aim for quick and higher returns for their investments, experts suggest that security too is paramount for safe trading in the digital markets and to trade safely, education is paramount - understanding of the cryptocurrency market.

Nirali Bhatia, a Mumbai-based Cyber Psychologist and a professional Psychotherapist says, "Youngsters are lured to cryptocurrencies by the allure of high profits, technological innovation, and the appeal of decentralised finance. Peer influence and social media also play a role in their adoption. Some see cryptocurrencies as a means of financial inclusion and autonomy."

She adds, "To trade safely, education is paramount - understanding of the cryptocurrency market, blockchain technology, and the specific digital assets they intend to invest in, reduces impulsive decisions and helps make informed choices. The cryptocurrency market is susceptible to hype and speculation, causing stress and FOMO.

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Further Nirali said, "Safe trading involves using reputable exchanges, implementing security measures, and safeguarding assets with hardware wallets for long-term storage. Additionally, it's crucial to decide between short-term and long-term investment strategies. In summary, while crypto offers opportunities, it comes with risks, and young investors should approach it cautiously, diversify their portfolios, and seek professional advice."

Safe Cryptocurrency trading

Cryptocurrencies are digital or virtual forms of currency that use cryptography for security. Unlike traditional currencies issued by governments, cryptocurrencies are decentralised and typically operate on a technology called blockchain, which is a distributed ledger that records all transactions across a network of computers. Safe cryptocurrency trading involves taking precautions to protect your investments and personal information from potential risks and scams associated with the cryptocurrency market, the experts suggest.

How Maharashtra government plans to tackle cyber crimes

In a significant move, the Maharashtra cabinet last week has given the green light to a Rs 837 crore cyber safety project aimed at addressing cybercrimes in the state effectively.

The primary objective of this project is to consolidate all modern technologies under one comprehensive framework. This initiative will include the establishment of a control and command centre, technology-assisted investigations, a centre of excellence, a Computer Emergency Response Team, a cloud-based data centre, and a security operations centre, as stated by the government.

As part of this project, the citizens will have the option to register their complaints via a 24x7 call centre, simplifying the reporting process.

Cyber crimes will be investigated using cutting-edge technologies and a highly skilled workforce, ensuring a thorough examination of each case and an increased likelihood of successful convictions, according to the statement.

Additionally, the cabinet has approved the provision of loans from state cooperative banks to financially distressed sugar cooperative factories, backed by the state government's assurance. This decision aims to alleviate financial stress within the sugar cooperative sector.