As cryptocurrency gains ground in India, the challenge posed by the rise of cybercrime becomes ever more complex. Faced with this reality, India’s Ministry of Home Affairs is striving to develop an innovative tool capable of effectively detecting and monitoring these growing threats.
India deploys CIAT Tool to counter cryptocurrency-related cybercrime
As the cryptocurrency sector continues to grow, fraudulent initiatives are multiplying to take advantage of users. India, currently home to a large number of cryptocurrency users, is facing a surge in cybercrime. As a result, the government is looking to redouble its efforts to mitigate this growing threat.
According to a report published by CNBC, Indian Ministry of Home Affairs (MHA) is developing an innovative tool called “Cryptocurrency Intelligence and Analysis Tool”, or (CIAT).
The main objective of this tool is to closely monitor the addresses of cryptocurrency wallets, particularly on the darknet, and immediately report suspicious activity to the relevant authorities.
CIAT is not limited to monitoring. It also compiles transaction records, including timestamps, the exchange platforms used, and the services involved. This exhaustive compilation makes it possible to track down cybercriminals efficiently, while guaranteeing total transparency in transaction monitoring.
Is crypto fraud commonplace in India?
As mentioned above, the need for such a tool is accentuated by the skyrocketing number of cryptocurrency-related scams in the country.
Recently, an Indian software engineer fell victim to a crypto scam, losing over $120,000 in the process. The scam began when he met a woman online who urged him to invest in a cryptocurrency. Unfortunately, once the funds were deposited, it proved impossible to withdraw them.
In July, the authorities arrested two individuals in connection with an alleged peer-to-peer (P2P) crypto scam in Ujjain, India. During the operation, police confiscated fake bank accounts, counterfeit ATM cards and various fraudulent documents. The suspects appeared to have used counterfeit identifiers to deceive users of the Binance P2P platform.
In fact, even a Bollywood actor is currently under investigation for his alleged involvement in a Ponzi scheme that affected many Indian investors.
Meanwhile, cryptocurrency continues to gain ground in the country. A recent global index, by Chainalysis, positioned the country among the world leaders in cryptocurrency adoption.
As a journalist at Coinpri, I’ve been captivated by the world of bitcoin and blockchain since 2020. The decentralized aspect of Bitcoin particularly piqued my interest. Since then, I’ve been working constantly to spread my knowledge, hoping one day to see a world where everyone fully enjoys their financial freedom.