India issues warning on surge in crypto wallet scams targeting users

Scammers are increasingly using fake verification links, messaging apps, and wallet permission tricks to drain crypto funds, prompting Indian cyber agencies to urge users to follow strict security practices and avoid sharing sensitive credentials.

India’s cybercrime monitoring agencies have issued a renewed warning over a surge in cryptocurrency-related fraud cases targeting digital wallet users across the country. The alert has been released by the Indian Cyber Crime Coordination Centre (I4C), which has observed a growing number of complaints involving scams directed particularly at users of platforms such as Trust Wallet and similar crypto services.

Fraud tactics shifting to private digital channels

According to the National Cybercrime Threat Analytics Unit (NCTAU), fraudsters are increasingly targeting victims through peer-to-peer cryptocurrency transactions and trading platforms. After initial contact, scammers often shift conversations to encrypted messaging applications like WhatsApp or Telegram, making it harder for authorities to trace their activities.

Victims are then guided toward counterfeit websites that appear legitimate, where they are asked to connect their crypto wallets for verification or transaction purposes. Once users grant access permissions, attackers gain control over the wallets and can transfer funds instantly. Officials have highlighted that such transactions are irreversible, leaving victims with no recovery options once the funds are moved.

Rising misuse of wallet credentials and seed phrases

The advisory notes that scammers are also exploiting user trust by obtaining sensitive wallet information, particularly seed phrases. Once these credentials are shared, attackers can fully take over digital wallets without further interaction from the victim. Authorities have also warned that the increasing use of private messaging platforms reduces visibility, allowing fraudulent networks to operate more freely.

To counter these risks, the cybercrime agency has issued a set of preventive guidelines. Users have been advised not to connect their crypto wallets to unverified or suspicious websites, avoid sharing seed phrases under any circumstances, and carefully verify all digital platforms before authorising transactions. They have also been urged to disconnect any unknown or suspicious decentralised applications (dApps) linked to their wallets.

Reporting mechanism and ongoing monitoring

In the event of suspected fraud, users are encouraged to report incidents immediately by calling the national cybercrime helpline at 1930 or by filing complaints through the official portal cybercrime.gov.in.

Dated April 20, 2026, the advisory underscores the growing risks associated with rising cryptocurrency adoption in India. Authorities continue to intensify monitoring efforts as digital financial ecosystems expand, aiming to curb emerging cyber threats and protect users from evolving scam tactics.