Numerous Indians Caught in Cryptocurrency Scam Networks in Southeast Asia: Report

Numerous residents of India are becoming victims of fraudulent job offers that guarantee lucrative positions but ultimately ensnare them in Southeast Asia’s cryptocurrency scams and cybercrime operations.

Government Rescue Initiatives and Responses

Local media reports indicate that these individuals are compelled to engage in online scams, including cryptocurrency fraud, phishing attacks, and pig butchering schemes. They operate in call centers that target individuals, primarily Indians, masquerading as investment consultants or fraudulent tech support.

Thousands of Indians ensnared in Southeast Asia’s cryptocurrency fraud networks, forced into online scams such as phishing and more. Government actions and rescue operations are in progress to dismantle these cyber slavery systems. #CryptoScams #CyberCrime

— Ultra | MSU Player | Crypto Updater (@pure_ai_chain_) October 2, 2024

Sources reveal that around 45% of cybercrimes targeting Indians originate from Southeast Asian nations, including Cambodia, Laos, and Myanmar. Many individuals travel to these countries seeking legitimate employment but find themselves detained upon arrival.

Once detained, victims are coerced into participating in cyber scams, primarily aimed at Indians in their home country. They are forced to make scam calls or create fraudulent social media accounts, often impersonating women to attract victims.

These scams encompass fake cryptocurrency investments and dating schemes. After victims deposit funds, they are ignored, and their contact details are blocked. Scammers seize the victims’ passports, confining them in secured locations and compelling them to continue the fraudulent activities.

A report indicated that between October 2023 and March 2024, Indian citizens lost approximately INR 500 crores (around $60 million) due to scams associated with these operations.

The magnitude of the issue has prompted the Indian government to take action. There is ongoing international collaboration between India, Southeast Asian authorities, and non-governmental organizations to rescue the individuals trapped.

In August, several Indian nationals were liberated from scam centers located in the Bokeo province of Laos. Following this, the Indian Embassy in Laos issued a public advisory, urging citizens to verify job offers prior to traveling abroad, especially those involving visas issued upon arrival.

A significant concern is the number of Indian nationals who traveled to Southeast Asian countries from January 2022 to May 2024 but have not yet returned.

Reports estimate that nearly 30,000 Indians remain unaccounted for, many of whom may still be ensnared in these scam operations.

73,138 patriotic Indians traveled to Thailand, Vietnam, Cambodia, and Myanmar in the last 28 months. As many as 29,466 of them have yet to return to their homeland. The majority are males; over half fall within the 20-39 age range; 12,000 are from three states. @IndianExpress pic.twitter.com/Oc1pVi603c

— churumuri (@churumuri) September 30, 2024

To tackle the situation, the Indian government has established an inter-ministerial panel dedicated to combating cyber slavery networks and facilitating the repatriation of victims.

Connections to Human Trafficking and Global Crime

Investigations have revealed that these cybercrime networks frequently have deeper connections to other illicit activities, such as human trafficking and labor exploitation.

The U.S. government has also taken measures to address this issue, particularly through sanctions. In a recent instance, a Cambodian senator was sanctioned by the U.S. Department of the Treasury due to his connections with cyber-scam centers and human trafficking. The investigation uncovered a broader network of human trafficking, with victims confined in walled facilities and subjected to physical abuse and drug use.

In May, Tether froze $5.2 million in USDT that had been laundered from various phishing schemes. This action aligns with the company’s efforts to combat illegal activities and enforce stringent network controls.

Notably, India ranks fifth globally in cryptocurrency-related complaints, with 840 cases reported in the Federal Bureau of Investigation (FBI) report indicating $5.6 billion lost to crypto fraud. The financial losses of $44 million positioned India among the top ten countries with the highest losses.

One of the most significant scams in India was the 2018 GainBitcoin Ponzi scheme, where Amit Bhardwaj defrauded over 8,000 individuals, resulting in losses of INR 2,000 crore.

The Reserve Bank of India continues to caution against cryptocurrencies, stating that they present serious financial risks.

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