A new study by the Center for Cybercrime Investigation has revealed an increase in cryptocurrency scams, highlighting the lack of regulation as a key factor.
Lack of Regulation and Crypto Scams
According to a new report by the CID, the lack of regulation in the cryptocurrency market in India is a primary reason for the rise in scams. The study titled 'Study on the Use of Money Mules in Cyber Crimes' was presented at a conference for senior police officials. It noted that the unregulated cryptocurrency market and the use of digital assets on gaming platforms contribute to this issue.
Role of Mules in Cybercrime
The report also discussed the topic of money mules who move money for criminals using their bank accounts. As a result of these actions, money can be laundered, and illegal funds transferred to the operators of cybercrime networks. 'The unregulated cryptocurrency market is exacerbating the issue of money mulling,' the report states. 'Laundered money is often converted into cryptocurrency or transacted through P2P transactions with genuine cryptocurrency traders.'
Bank Control Issues
The report also notes that banks are failing to comply with requirements to flag suspicious transactions, contributing to the rise of scams. 'Investigations have revealed that banks do not always flag transactions as suspicious when large volumes occur.' Additionally, the lack of uniform control over changes to registered phone numbers linked to customer accounts poses a challenge.
The conclusion of the study emphasizes the need for stricter regulation and oversight in the field of cybercrime and cryptocurrency to prevent further losses and protect citizens.
