India’s crypto sector is increasingly vulnerable to security threats, raising concerns about the future stability and safety of digital assets.
According to a new report that was put together with input from important Indian cybersecurity agencies, such as the Computer Security Incident Response Team for the Finance Sector (CSIRT-Fin) and the Indian Computer Emergency Response Team (CERT-In), cryptocurrency has been identified as a growing frontier for cyber threats in the nation.
The paper emphasizes how cryptocurrency platforms are increasingly being used in ransomware attacks, phishing schemes, money laundering, and other types of criminality.
India’s Growing Crypto Face At The Brink of Bigger Threats
The sophistication and frequency of attacks aimed against financial institutions and individuals alike are increasing in tandem with India’s growing embrace of digital assets.
Cryptocurrencies’ pseudo-anonymous characteristics and decentralized infrastructure make it difficult to track down bad actors, according to CERT-In and CSIRT-Fin.
The research also highlights an increase in hacking attacks and fraudulent investment schemes that target cryptocurrency wallets and exchanges.
Authorities Need To Take Better Actions to Protect Crypto Diaspora
To counter the changing threats, authorities are calling on stakeholders to bolster cybersecurity processes, put strong Know Your Customer (KYC) procedures in place, and raise user awareness.
The Indian financial ecosystem is also becoming increasingly concerned about the technical and regulatory difficulties presented by the cryptocurrency industry.
Experts emphasize the necessity of a unified defensive strategy to protect the digital economy from new dangers as India continues to investigate its future with digital money.
Also Read: Lithuanian Man Arrested In India Over Alleged $28M Crypto Laundering Scheme
Crypto Exchange Worst Hit By Attacks and Illegal Activities
The report draws attention to a worrying trend: rather than focusing on individual users, fraudsters are increasingly targeting crypto exchanges.
Given that exchanges handle vast amounts of user data and digital assets, this change in approach is thought to be more profitable. Threat actors can take large sums of cryptocurrency in a single strike by breaking into these systems.
According to the research, hackers are now concentrating on larger, centralized targets where the potential payoff is higher, as security measures for individual wallets get better.
These attacks frequently use advanced tactics including malware, phishing, and system vulnerability exploitation.
To keep ahead of changing threats and safeguard users and assets on their platforms, authorities are advising exchanges to bolster their cybersecurity infrastructure and carry out routine assessments.
New Research Comes as India Sees Rise in Illegal Crypto Activities
Due to a lack of thorough regulation and the quick uptake of digital assets, illicit crypto activity has significantly increased in India.
Authorities have noted a rise in cases involving tax evasion, money laundering, financing of terrorism, and fraudulent cryptocurrency investment schemes.
Additionally, law enforcement has discovered crypto connections in ransomware attacks, dark web activities, and cyber scams. Fake tokens and unregulated exchanges have become typical tools for financial crime as more individual investors enter the market.