Farmers in India Fall Victim to $19 Million Cryptocurrency Scam Through Identity Theft

The Income Tax Department in India has exposed a cryptocurrency scam worth $19.31 million, which specifically targeted farmers and individuals with low incomes in Telangana and Andhra Pradesh, as reported by the Central Board of Direct Taxes (CBDT). The perpetrators stole personal information, such as Permanent Account Numbers (PANs), to carry out significant crypto trades without the victims’ awareness. Authorities have confirmed nine cases so far, tracing over $19 million in unauthorized transactions to innocent people—including farmers and delivery personnel—who were completely unaware of the fraudulent activity India’s IT Department Uncovers $19M Crypto Fraud Targeting Farmers [ 1 ].

The scammers took advantage of people who had not filed income tax returns, using their identities to bypass regular tax oversight. In one instance, a farmer was falsely associated with a $9.5 million crypto purchase, while a food delivery worker was listed as having made large trades despite having no knowledge of cryptocurrency. Many victims were stunned when contacted by authorities, with several admitting they had never even heard of

and had no idea their identification had been exploited India’s IT Department Uncovers $19M Crypto Fraud Targeting Farmers [ 1 ].

The probe found that the scheme relied on fake PAN cards and forged personal data, allowing the fraudsters to operate undetected. The abuse of identities belonging to non-filers highlights gaps in India’s crypto regulatory system, which currently lacks thorough oversight. This incident has sparked debate about cybersecurity, identity protection, and the urgent need for tighter rules in the fast-growing crypto sector India’s IT Department Uncovers $19M Crypto Fraud Targeting Farmers [ 1 ].

To address the increase in crypto-related fraud, the Reserve Bank of India (RBI) has announced strict digital payment authentication requirements starting April 2026. These new rules will require dynamic verification for every digital transaction, such as one-time passwords, biometrics, or unique hardware tokens for each payment. The goal is to prevent credential reuse and strengthen security for international payments, with issuers held responsible for any losses resulting from non-compliance India Cracks Down on ‘Alarming’ Digital Payments Fraud With… [ 2 ].

India’s rapid rise in crypto usage, which led the 2025 Chainalysis Global Crypto Adoption Index, has been accompanied by a spike in scams. In August 2025, the Enforcement Directorate (ED) searched 11 sites in Delhi and other cities, investigating a $29 million Bitcoin fraud involving phishing and fake tech support. In a separate case, the ED froze assets tied to Chirag Tomar, a fraudster imprisoned in the U.S. who used counterfeit Coinbase sites to steal $20 million in cryptocurrency India Freezes Assets Linked to Man Jailed in US… [ 3 ].

The government’s piecemeal approach to crypto oversight—focusing on taxation rather than a full legal framework—has faced criticism. A government report from September 2025 indicated that India will not introduce comprehensive crypto legislation but will instead rely on tax enforcement and anti-money laundering controls. Officials have cautioned about the dangers of speculative crypto trading and stablecoins, which could threaten the payment system, even as Indian citizens are estimated to hold $4.5 billion in digital assets India Cracks Down on ‘Alarming’ Digital Payments Fraud With… [ 2 ].

Ongoing operations by agencies like the ED and CBI highlight the magnitude of the issue. In February 2025, the CBI raided 60 locations linked to the GainBitcoin Ponzi scheme, while the ED tracked a $600 million crypto laundering case involving fake websites. These efforts reflect a coordinated attempt to dismantle fraudulent networks, though experts warn that weaknesses in identity checks and monitoring of international transactions remain major risks ED, CBI Begin Crackdown As India Sees Surge In… [ 4 ].