Bitcoin fraud ‘too commonplace’ say experts

There has been a marked increase in bitcoin-based scams by fraudsters in the last few months that have been deemed inevitable as the cryptocurrency gains prominence.

The demonetisation in India enforced by the central government last November saw 87 per cent of physical cash rendered obsolete and is causing a flurry of bitcoin action which is also leading to an increase in fraud cases around the blockchain-based cryptocurrency.

Bitcoin had sold as a premium of 35 per cent from exchanges during December but left customers open to fraud risks as the digital currency is not yet recognised by the central bank and scams could easily catch out unsuspecting amateur investors, experts said.

In a public noticed in January, the Reserve Bank told users that businesses which utilised the cryptocurrency were not authorised in the country and remained outside the protection of consumer law.

Experts were concerned that despite the surge in the popularity of bitcoin, government bodies in India were yet to follow the path of the Philippines and Japan and launch an official plan for its regulation.


Related Stories

CBA blocks virtual currency purchases
CBA expressed concern over “the unregulated and highly volatile nature of virtual currencies”,... Read More
RBA floats 'digital ID' to tackle fraud
As part of the RBA’s August 2017 meeting, the Payments System Board discussed the potential for the... Read More
CBA responds to AUSTRAC probe, blames ‘coding error’ for alleged money laundering
Financial intelligence agency and industry regulator, AUSTRAC, has initiated a civil suit against... Read More
Bank of Thailand, MAS secure dual fin services agreements
The fintech agreement provides a direct channel for BOT and MAS to share information on relevant... Read More