India is working with tech giants Google and Facebook to combat a surge in pig butchering scams, which often involve cryptocurrencies being used both as a hook to lure victims and a tool to launder the stolen funds.
According to the 2024 annual report from the Indian Union Home Ministry, pig butchering scams or investment scams have been targeting “unemployed youths, housewives, students, and needy people,” exploiting their financial insecurities and trust to lure them into fraudulent schemes that promise quick and substantial returns.
Victims are “losing large sums of money (even borrowed money) on a daily basis,” the report added, noting that scams are increasingly being promoted using Google’s advertisement services and messaging platforms like Whatsapp and Telegram.
To combat this, the Indian Cyber Crime Coordination Centre, which operates under the Ministry of Home Affairs, has joined hands with Google and Facebook to proactively flag related activities, such as malicious advertisements, detect fraudulent digital lending apps, and identify phishing campaigns linked to these scams.
Among other efforts to combat crypto-related crimes, crypto exchanges have been integrated into the Citizen Financial Cyber Frauds Reporting and Management System, enabling faster detection and blocking of suspicious cryptocurrency transactions. The platform serves as a centralized hub where law enforcement agencies, financial institutions, payment wallets, and crypto platforms collaborate to prevent the illicit flow of funds.
Additionally, specialized cryptocurrency investigation training sessions are being conducted nationwide to equip police officials with skills to trace crypto transactions, seize digital assets, and analyze blockchain evidence, the report added.
With a high grassroots-level adoption rate, India has been a prime target for crypto fraud rings, often operated from outside the country, particularly across regions like Southeast Asia.
As such, authorities have actively worked to increase oversight of the currently unregulated sector. In 2023, India’s Financial Intelligence Unit mandated that crypto exchanges must register as a reporting entity to be able to operate in the country.
Meanwhile, the Enforcement Directorate, India’s economic intelligence agency under the Ministry of Finance, has cracked down on several high-profile incidents of fraud, some of which cost victims millions of dollars.
In June 2024, the ED froze over $3 million in assets linked to the Highrich group crypto Ponzi, which promised returns of up to 15% on investments into a fake cryptocurrency. Just months later, the agency dismantled another fake cryptocurrency, which led to losses of upwards of $800,000.
