India’s Crypto Fraud Epidemic Hits Record Highs in 2026
India's cryptocurrency landscape, once dominated by dreams of windfall gains, now faces a stark reality check. Reported cases of crypto-related fraud surged 773% year-over-year, reaching 11,700 incidents in the first eight months of fiscal 2026 according to government data. The epidemic predominantly targets young investors aged 20-40, who comprise 82% of victims.
A chilling case study emerged from Bengaluru's tech hub, where a 30-year-old developer lost ₹368 crore in an elaborate 'long con'. Posing as a recruiter, fraudsters built trust over 12 months while paying the victim ₹15 lakh for legitimate freelance work before executing the heist. With 34 million Indians holding ₹24,800 crore in digital assets, scammers are exploiting retail investors rather than targeting institutional whales.
