Although scammers targeting cryptocurrency users isn’t a new phenomenon, the modus operandi of doing so keeps getting reinvented. Fake domain names and meticulously crafted social-media handles that mimic the identities of popular crypto exchanges are on the rise. 

Scammers essentially send messages to users on platforms such as Telegram and Whatsapp, asking them to register on the website to earn high rewards. Given that the domain name of websites are almost similar to prevalent exchanges, users get deceived and start using the platform. 

Exchange Unocoin said it has seen scammers entice users to deposit huge sums of money, promising an appealing 30 per cent commission on investments. Later, as the deposit amounts increase, the fraudsters abscond with the funds, leaving victims unable to make any withdrawals.

Some of the exchange’s customers were scammed using similar domain names like https://unocoin21.xyz/Login/register and https://unocoin21.xyz/Login/index. Users have lost significant money by falling prey to this scam. In five different cases, users were seen shelling out money in the range of ₹11,000 to ₹2 lakh until they realised the website was fake. 

Post multiple complaints, the exchange issued an advisory: “It is important to note that trusted cryptocurrency exchanges such as Unocoin and other reputable Indian exchanges will never engage in such activities. Therefore, users should use caution and confirm the legitimacy of any site or offer before engaging with it.” 

Similarly, replicas of exchange WazirX, too, exist. Rajagopal Menon, Vice-President, WazirX, said: “Fake website scams are a common Internet scam that has affected most online brands. WazirX is also no exception. These scams involve the creation of fake websites that cleverly mimic popular online platforms, luring unsuspecting users into making payments for goods and services that never materialize.” 

Exchange CoinSwitch, too, saw multiple social-media handles and website domains that had a complete resemblance to its website and handles. In an attempt to educate its users, it launched a bounty hunt asking participants to report such scams that impersonate the company. Platform said that it received more than 1,500 entries for the same.