Bitcoin News General News

Hacker steals Rs 16 Lakh from an Indian online payment platform targeting Bitcoin traders

Hacker steals Rs 16 Lakh from an Indian online payment platform targeting Bitcoin traders

As per latest news reports, a crypto fraud occurred in one of India’s online payment platform. A hacker was able to break through the security measures of Geeglobia India Private Limited that operates Geepay. The fraudster transferred the money to 19 bank accounts in different banks on April 10 which amounted to Rs 16 lakh ($24069).

Sukhjinder Singh (29), the company’s director and complainant, reported the case to the cyber cell on April 11. He claimed that hackers targeted bitcoin traders to transfer funds from his company’s system. In the aftermath, Manisha Zende, police inspector, wrote a letter to all the banks which managed the alleged accounts to cease all their operations. In the meantime, 328 unauthorized transactions already happened through these bank accounts.

Singh explained, “On April 10 around 8.40 pm, I was going through some reports and learned that somebody had created a dummy profile account and hacked the company’s server. The person had also stolen the firm’s data by furnishing security codes. The substantial amount had been moved into 19 fake accounts in nine different banks. So, I immediately shut down operations of the server. I could also locate the path of the transactions with account details. I immediately contacted the customer care numbers of the banks. I gave them all the details of the fake accounts but in vain. The bank authorities confirmed that the transactions were done and claimed to be helpless. They said that they could not block the transactions as their working hours were over. There was also no provision to curb such frauds.”

Geepay was launched by Geeglobia India Private Limited in 2013 which has since worked to assist domestic money remittance services. In order to undertake online bill payments, domestic money transfer, prepaid and postpaid recharges and business auditing and valuation, the company manages a wallet for merchants that hold virtual money.

Singh continued, “On April 11, I approached the cyber cell with the complaint and narrated the entire incident. The team had sent letters to the respective banks, but again the procedure took around 6 pm to be able to stop the transactions and freeze the accounts. A total of 328 illegal transactions have been done by that time.”

Police authorities have lodged a complaint under sections 464, 465, 467, 471, and 420 for cheating of the Indian Penal Code (IPC), making false electronic documents and forgery of a document that purports to be valuable security.

It’s not the first time people have been duped for cryptocurrencies by cybercriminals in India. In a similar case, two men who allegedly stole several millions of rupees through digital currencies were caught by Cyber Cell Delhi Police.

The heist of Geepay is more than warning alarms for other crypto supporting websites as their security systems have not been able to combat criminal minds. As of now, police claim that IP addresses have been tracked and the culprits would be arrested shortly. The rest of the cryptocurrency exchanges, wallet service providers, and other banking and financial service providers are currently on the brink of a looming threat. Sensing this, the RBI has already asked the banks to stop business relations with crypto companies and exchanges before June 30th.

About the author

mm

Sean Halverson

Sean Halverson knows an emerging opportunity when he sees one. He's gone big into cryptocurrency. He has been contributing towards ICO Advisory and Start-Up since a couple of years. With his experience, he decided to study the cause and effects of fluctuations in the cryptocurrency market and to share his knowledge with the crypto enthusiasts.

Add Comment

Click here to post a comment

Your email address will not be published. Required fields are marked *