Crypto scammers target Indian doctor via ‘drugs in parcel’ scam

A doctor in India was tricked into transferring over $35,000 by crypto scammers as part of a medicine package scam.

According to local media, the victim, who lives in the state of Maharashtra, was allegedly sent to Thailand by scammers who allegedly found three passports and three SIM cards along with “MD drugs” in a package.

Police officials claim that the scam took place between August 2 and 6. The scammer lured the victim into downloading a mobile app to purchase cryptocurrencies worth INR 30,86,535, which is approximately $36,763.

The doctor was then asked to transfer the requested amount to multiple bank accounts, usually to make it harder for law enforcement to track the money.

Typical of these scams, perpetrators claim to be from a legitimate organization, such as the police, a courier service, or a government agency. The scammer uses scare tactics to create a sense of urgency by claiming the victim may get into trouble with the authorities.

Often, payments made with cryptocurrencies are offered as a quick fix to avoid further problems. Once the victims comply and transfer the funds, the scammers disappear.

India has been witnessing such scams for the past few years. An investigation launched by cybercrime authorities in Pune in December 2023 revealed that over 12 victims lost more than $480,000 in such scams.

Investigations revealed that the money obtained through this scam was laundered through multiple bank accounts before being used to purchase cryptocurrencies and transfer them out of India to China, Dubai and Taiwan.

To prevent such incidents involving cryptocurrencies, Indian regulators have tightened regulations around cryptocurrency exchanges. India’s Financial Intelligence Unit has made it mandatory for cryptocurrency exchanges to register with the regulator. Platforms that are not registered with the FIU have been blocked.

The country’s Enforcement Directorate is also battling various fake investment schemes that are using the hype around cryptocurrencies to defraud Indian investors.

Despite efforts, crypto crimes in the country have continued to rise, and even those with law enforcement authority have often been found guilty of engaging in such activities. Since there is no crypto-specific regulatory framework, these crimes are prosecuted under existing laws.