Crypto trading frauds are increasing all over the world, India is number one: MEXC
The craze of cryptocurrency is increasing rapidly all over the world including India, but with this the dangers associated with it are also increasing. Recently, crypto exchange MEXC has released a worrying report regarding trading fraud, which states that more than 80,000 crypto frauds have been reported on MECX in the first quarter of 2025, of which 33% have happened only in India. These trading frauds have been carried out using fake accounts, bots and organized scamming networks. This report is pointing to the increasing risk of crypto investment in India. Why are trading frauds increasing: New tokens and low fees are increasing the risk
MEXC has given two major reasons behind these increasing frauds. First, the exchange recently listed new tokens of less popular markets, attracting a large number of both new users and scammers. Second, MEXC's low trading fees also attracted new investors to the platform, including those who are looking to carry out fraudulent activities by taking advantage of the lack of oversight.
According to the report, India has the highest number of suspicious accounts at more than 27,000. This is followed by 6,400 suspicious accounts in CIS countries and about 5,600 suspicious accounts in Indonesia. Especially in Indonesia, the number of such accounts has increased by 1,300% compared to the last quarter of 2024, which is very worrying. MEXC's report shows that there is a lot of excitement about cryptocurrency in these areas, but there is a huge lack of information about safe trading.
Lack of law remains a concern: There is no clear regulatory framework for crypto in India
No clear and dedicated law has been made regarding cryptocurrency in India so far. Because of this, investors do not understand which platform to trust and which activity can make them a victim of fraud. Scammers take advantage of this lack of regulation, who cheat people without any fear. MEXC's report teaches us that if there was a strong legal framework for crypto in India, it would have been easier to prevent such frauds and investors' trust would also have remained intact.
Low financial literacy and social media scams are increasing the risk
The state of financial awareness in India is also making this problem more serious. According to the report of India's National Center for Financial Education in February 2025, only 27% of Indian adults have basic knowledge of financial management. This figure falls further to only 19% among millennials. MEXC's report indicates that due to this lack of financial literacy, India is becoming a stronghold of crypto trading fraud.
Most people in India are getting information about crypto trading from Telegram, YouTube and other social media platforms, where fake experts often entice people to invest in the name of 'secret tips' and 'fast returns'. But in reality, most of these schemes lead to crypto fraud.
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How to avoid such scams: Vigilance and correct information are important
This disclosure of MEXC shows that it is very important for crypto users to be aware during trading to avoid trading fraud. Investors should always use KYC-verified and regulated exchanges. Keep away from any unknown links, social media tips or 'secret schemes'. Do your own research before investing and never make greed the basis of your investment.