India has stepped up its game in tackling crypto-related scams by teaming up with tech heavyweights Google and Meta, as revealed in the Interior Ministry's 2024 annual report. This collaboration specifically targets "pig butchering" scams—a sinister type of crypto fraud where scammers exploit people’s trust to drain their savings. These scams often prey on vulnerable groups like unemployed youth, homemakers, students, and those in financial distress.

The modus operandi is straightforward but devastating. Scammers pose as financial advisors or representatives of investment firms on social media platforms or through search engine ads, offering irresistible returns on cryptocurrency investments. Over time, they gain the victims’ trust, convincing them to transfer significant amounts into fake schemes. The report highlights that such scams caused investors to lose over $3.6 billion in 2024 alone. Fraudsters also misuse tools like Google’s ad services and Meta’s sponsored ads to promote malicious apps and phishing campaigns.

In response, India’s Indian Cyber Crime Coordination Centre (I4C) has set up an advanced system to combat these threats. They actively monitor digital lending apps and Android banking malware, sharing lists of phishing advertisers with Google for swift removal. Meta plays a pivotal role by taking down scam-related pages and flagging illegal lending apps. These efforts are bolstered by Google's and Meta's proactive measures to identify and block fraudulent ads and accounts.

A major leap in these efforts is the integration of Google Pay into the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS). This allows authorities to intercept fraudulent transactions in real time, trace funds, and even freeze assets. In 2023 alone, this system saved over ₹16 billion and brought relief to more than 575,000 victims.

Additionally, the ministry is focusing on equipping law enforcement agencies with skills in blockchain analysis. This will enable them to trace illicit crypto transactions and confiscate digital assets linked to scams—a significant step toward curbing this growing menace.

While these measures highlight India’s proactive approach to tackling crypto scams, the larger crypto landscape in the country continues to grapple with challenges, particularly high taxes and regulatory uncertainty. Many crypto enthusiasts argue that India’s tax regime—marked by a steep 30% tax on gains and 1% TDS—has pushed genuine investors and traders toward gray markets or foreign platforms. This has sparked debates over whether the government is stifling innovation in its quest for control.

India’s fight against crypto scams is a double-edged sword. While significant strides are being made to protect users from fraud, the broader ecosystem still faces hurdles. A balanced approach could unlock the true potential of crypto in India while safeguarding its citizens.

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