The rapid rise of cryptocurrency in Pakistan has brought immense opportunities and equally serious risks. Talha, a data scientist with an MS in computer science, shares how even tech-savvy investors can fall prey to scams. “Never save your wallet key online. I learned that the hard way,” warned Talha, who works on web development, according to The Times of India report.

Despite having two-factor authentication (2FA) and strong security on his Facebook account, he lost access to his crypto wallet, not due to phishing or malware, but because months earlier, he had messaged himself his 12-word seed phrase on Facebook Messenger. “There was no login attempt, no alert. The funds just vanished,” he said.

The incident revealed a stark truth: no security system is foolproof once a key is exposed. “We think we’re safe behind strong passwords or 2FA, but in reality, anything online is public,” Talha noted in the report.

Small Wins, Big Losses

Talha’s losses didn’t end there. Active in Telegram groups discussing crypto, he recalled interactions with a user claiming to share insider tips. “Someone with a Chinese profile reached out, talking about workouts, lifestyle, and crypto,” he said. What seemed like normal networking soon turned risky: the person introduced a new coin promising quick profits, states the report.

Talha’s $30 investment grew to $300 on paper until he attempted to sell. “It wouldn’t sell,” he said. “That’s when I knew it was fake. People were still buying, but no one could withdraw. It was just an illusion of growth.” When confronted, the scammer pushed him to invest $1,000 next time. “That’s how these cons work,” Talha explained. “The first time, they let you win small. Then they trap you when you scale up,” claims the TOI report.

A Growing Threat Across Pakistan

Talha’s experience mirrors countless others. An early crypto adopter who runs the Facebook page Pakistan iFrauds described his own encounters. From phishing emails to chargeback scams and payments from hacked accounts, the financial loss was compounded by legal trouble. “I even got a case filed against me by authorities,” he said in the report. “I was the one who was scammed, but I had to pay a bribe of PKR 7,00,000 just to close the case.”

Even so, he remains optimistic. “Most scams could have been avoided if I had followed standard operating procedures and been less trusting,” he admitted. “I still made a profit overall, so I believe crypto has been beneficial; it’s the future.”

The report added that the other victims echo this mix of trust and caution. A doctor from Sindh lost nearly PKR 1 million to crypto schemes and blamed misleading content from podcast hosts. Similarly, a celebrity journalist refused to reclaim her hacked Instagram account, fearing followers would think she was complicit.

Scammers Exploit Platforms And Trust

Crypto influencer Waqar Zaka described in the TOI report that the scale of deception: scammers impersonate him to defraud “over a million people every month.” He noted that scams are rampant across Instagram, Facebook, and Telegram, often targeting users outside traditional crypto spaces, including women watching lifestyle content.

The report noted that an insider at an AI and crypto startup described scams on Discord and Telegram as “an automated business.” Fake bots lure users into channels where humans later close the con. “It’s like a Venus flytrap, once you land there, trained humans take over, using real technical jargon to sound legitimate,” he said.

Regulatory And Awareness Gaps

Pakistan ranks third globally in crypto adoption, yet most transactions are retail-driven and occur in unregulated environments. The Pakistan Crypto Council (PCC) has suggested a grievance cell for P2P scam complaints, reflecting growing frustration, as per the report.

Regulatory progress has been slow but steady. The Virtual Assets Ordinance (VAO), 2025, established the Pakistan Virtual Asset Regulatory Authority (PVARA) to license and oversee virtual asset activities. Still, with thousands of crypto apps in circulation and high engagement, awareness remains critical.

Building Trust In Crypto

Fintech expert Zeeshan Ahmed stressed in the report the importance of verified platforms. “Don’t transact in unverified environments. If you want to trade or store crypto, use a licensed exchange, those operating under regulators in Bahrain or the UAE have oversight so tight that fraud chances are less than one per cent,” he said.

Ahmed stressed that Pakistan can adopt globally tested regulatory frameworks rather than reinventing them. “The weakest link is still human trust,” he concluded. As Talha reminded: “We think we’re safe behind passwords and two-factor authentication. But if the key is online, it’s never really yours.”