Fraudsters Aim at Peer-to-Peer Cryptocurrency Traders for Money Laundering Activities

Money linked to online fraudulent schemes such as loan scams, OTP swindling, and courier deceptions is often offered to unsuspecting traders.
| Photo Credit: file photo

Peer-to-peer (P2P) cryptocurrency traders are the new mark for cybercriminals who are laundering pilfered funds by posing as legitimate participants on trading exchanges.

Fraudulent actors entice traders with propositions to purchase cryptocurrencies, channeling funds acquired from deceitful activities into their accounts. These transactions are tainted by associations with various internet scams, such as deceitful loan applications, OTP theft, and fraudulent courier services.

Bengaluru’s Mohammad Ismail, a cryptocurrency merchant, shared his encounter with such cybercriminal schemes to The Hindu. Following a perplexing call from Gujarat police, who implicated his company’s bank account in a cyberfraud case, Ismail faced unexpected scrutiny. A visit to Gujarat was necessitated to clarify the allegations.

“I was mistakenly believed to be involved with an online scam ring due to illicit money traced back to my account,” recounted Ismail, affirming his legitimacy and tax-abidance as a trader.

This confusion originated from a transaction made two months previously, in which someone feigned interest as a trader and bought 4,000 Tether coins at ₹84.84 each, paying through his account.

“The criminal nature of the transaction was unknown until police intervention,” Ismail disclosed, noting the rising prevalence of this issue among his peers. He explained that cybercriminals fancy cryptocurrencies for their convertibility and anonymity, particularly in lax jurisdictions like Dubai.

Another trader underscored the increasing regularity of such cons over the past year, remarking on the ease and reduced risk of tracing funds that cryptocurrencies afford to lawbreakers.

A law enforcement officer specializing in cybercrimes corroborated this trend, recognizing P2P trading’s susceptibility to scams and urging traders to objectively scrutinize their counterparts to avoid such frauds.