An international syndicate of debit card cloners was recently busted in India and investigations revealed that bitcoin was used in their transactions. As it turns out, the gang siphoned money out of ATM machines using these cloned cards then converted the funds to bitcoin before being distributed to its members.
One of the key attributes of bitcoin is its pseudo-anonymity, as transactions are validated using complex algorithms and cannot always be traced back to any identities. This has been one of the reasons why the cryptocurrency has typically been tapped by scammers or hackers, as this makes it slightly difficult for authorities to track down perpetrators.
Gang Members in Mumbai and Dubai
The gang involved was found active in Mumbai after several complaints were filed in Gujarat, Andhra Pradesh and some southern states, but the funds were actually being sent to Dubai. Authorities said that the money converted through bitcoin was transferred to Dubai-based Sumair Sheikh through a hawala operator.
Hawala, also known as hundi, is an informal system of transferring funds that involves a huge network of money brokers. This is prevalent in the Middle East, North Africa, and India in which they operate outside of conventional forms of banking and finance.
Through this system, a person that