Deceived by a Fake Refund Scam Involving a Crypto ATM? Here’s What Indian Law Says

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Advocate Rohit
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Deceived by a Fake Refund Scam Involving a Crypto ATM? Here's What Indian Law Says

If you are stuck in such a situation, here is what to do.

This is a rewritten account of an incident that happened to Mr. Rohan Sharma from Pune. One afternoon, Rohan received an email that looked like a payment receipt from “BharatWallet,” a popular online payment system. The email stated that his account had been charged ₹29,500 and the amount would be debited that day. Panicked at the thought of losing his money, he immediately called the customer support number provided in the email.

Although he checked his bank account and saw no such deduction, the person on the phone, posing as a customer support executive, insisted there was an issue. They convinced him to download a few “security apps” to process a refund. Feeling suspicious as the process dragged on, Rohan was still under their influence. The scammers then instructed him to go to a nearby “DigitalRupeeX” crypto ATM, assuring him it was part of their secure refund protocol. Completely confused and manipulated, he followed their instructions and was tricked into transferring ₹82,500 from his own bank account through the crypto ATM. The moment he saw the debit message from his bank, he realised he had been scammed. He immediately disconnected the call and contacted his bank to have his account and card frozen. Now, he is left wondering if he can recover his lost money and is worried about his sensitive information being compromised.

Advice in such cases

  • Immediately inform your bank to freeze your account, block all associated cards, and report the fraudulent transaction.
  • Report the incident on the National Cyber Crime Reporting Portal (www.cybercrime.gov.in) or by calling the helpline number 1930 within the ‘golden hour’ to increase the chances of blocking the money transfer.
  • File a formal complaint (First Information Report – FIR) at your nearest police station, specifically with the Cyber Crime cell if available in your city.
  • Preserve all evidence, including the fraudulent email, call records, transaction messages, and any other communication with the scammers.
  • Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

Applicable Sections of Law

Such crimes are primarily dealt with under the Bharatiya Nyaya Sanhita, 2023 (BNS) and the Information Technology Act, 2000. The key sections include:

  • Section 318 of the Bharatiya Nyaya Sanhita (BNS), 2023: This section deals with cheating. The scammers dishonestly induced Rohan to deliver money by deceiving him.
  • Section 319 of the BNS, 2023: This section applies to cheating by personation, as the criminals pretended to be customer support executives from a legitimate company.
  • Section 66C of the Information Technology Act, 2000: This pertains to identity theft, as the scammers used the identity of a known company (“BharatWallet”) to commit the fraud.
  • Section 66D of the Information Technology Act, 2000: This section specifically punishes cheating by personation using a computer resource or communication device.

If you are the complainant

  • Act swiftly. The sooner you report the fraud, the higher the chances of the authorities freezing the accounts where the money was transferred.
  • Gather all digital evidence meticulously. This includes screenshots of the phishing email (including headers), call logs, bank statements, and any transaction IDs from the crypto ATM.
  • When filing a complaint on the cybercrime portal or with the police, provide a clear, step-by-step narrative of the entire incident.
  • Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think
Deceived by a Fake Refund Scam Involving a Crypto ATM? Here's What Indian Law Says

If you are the victim

  • Beyond reporting, take immediate steps to secure your digital life. Change the passwords for all your crucial online accounts, especially email and net banking.
  • Enable two-factor authentication (2FA) wherever possible for an added layer of security.
  • Be extremely cautious of “recovery agents” or other individuals who may contact you promising to recover your lost money for an upfront fee. These are often secondary scams targeting vulnerable victims.
  • Regularly follow up with the investigating officer at the police station and the nodal officer at your bank to stay updated on the progress of your case.
  • Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation of come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think

How the police behave in such cases

Upon receiving a complaint, the police, particularly the Cyber Crime Cell, will register an FIR under the relevant sections of the BNS and IT Act. The investigation typically involves tracing the digital trail, which includes the phone numbers used by the scammers, the IP addresses from which the emails were sent, and the money trail. In cases involving cryptocurrency, tracing becomes more complex. The police will issue notices to the bank, the payment gateway, and the crypto exchange (“DigitalRupeeX”) to obtain details of the accounts and crypto wallets used to receive the fraudulent funds. The process can be lengthy due to the technical expertise required and the often cross-state nature of these crimes.

FAQs people normally have

Deceived by a Fake Refund Scam Involving a Crypto ATM? Here's What Indian Law Says

What evidence is required?

To build a strong case, you must provide the following evidence:

  • A copy of the fraudulent email or SMS received.
  • Screenshots of your phone’s call log showing the numbers of the scammers.
  • Your bank account statement highlighting the unauthorized transaction.
  • The transaction ID or reference number of the fraudulent transfer.
  • Any receipt or transaction detail from the crypto ATM, if available.
  • Details of the remote access applications you were asked to install.

How long will the investigation take?

Cybercrime investigations do not have a fixed timeline. Tracing money through multiple bank accounts and then into the complex world of cryptocurrency can take several months, or even longer. The duration depends on the cooperation received from banks and crypto exchanges, the complexity of the money trail, and whether the culprits are operating from within the country or abroad. Recovery of the funds is challenging and depends heavily on how quickly the fraudulent accounts can be identified and frozen before the money is withdrawn or moved further.

Advocate Sudhir Rao, Supreme Court of India

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