The Indian government has increased its surveillance over the crypto sector as indicated by the rise in Forensic analysis. According to local media reports, in order to prevent cybercrimes, the Indian government is stepping up its efforts to monitor cryptocurrency transactions because criminals either directly or indirectly use the digital currency to pay out illegal funds.
By examining these transactions, the government hopes to give law enforcement the vital proof they need to look into cybercrimes. The report comes at a time when India has seen a rise in illegal crypto activities especially scams and frauds.
India’s Forensic Analysis of Crypto Wallets Sees Rise
According to data from the Union Home Ministry’s National Cyber Forensic Laboratory of India, the number of forensic cases involving cryptocurrency increased dramatically between 2020 and 2024, rising from just 11 cases in 2020 to a staggering 291 cases in 2024—a rise of more than 2,600 percent.
This expansion shows how forensic investigators and law enforcement organizations are now very interested in cryptocurrency. Analysis of cryptocurrency transactions has increased over the past three years, suggesting that the government is doing something soon.
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The field of crypto forensics has been expanding year after year. There were 39 incidents reported in 2021, compared to just 11 in 2020. Cases increased sharply to 280 in 2022, 379 in 2023, and 291 in 2024.
The sharp rise in cases in 2022 and 2023 suggests that forensic teams expanded their efforts to combat financial crimes involving digital currencies, possibly as a result of global legal shifts and the rise in cybercrime offenses.
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India Grapples With Rise in Illicit Crypto Activities
As the cryptocurrency sector continues to grow, scams and frauds involving cryptocurrencies have increased significantly in India. With a rise in interest in digital currencies has grown, scammers have discovered new ways to take advantage of unwary investors.
Phishing attacks, Ponzi schemes, phony initial coin offers (ICOs), and fraudulent investment platforms are examples of common frauds. Many of these scams use social media, online advertisements, or phony websites to attract novice cryptocurrency traders and offer large returns on investments.
Fraudulent apps that imitate trustworthy cryptocurrency exchanges and fool users into depositing money before vanishing are one example. Investors are also at serious risk from the emergence of “pump and dump” schemes, in which the prices of obscure tokens are inflated.
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