India’s Ministry of Home Affairs (MHA) is reportedly developing a cryptocurrency intelligence tool to combat the rising number of crypto fraud cases in the country.

The Cryptocurrency Intelligence and Analysis Tool (CIAT), spearheaded by MHA affiliate Indian Cyber Crime Coordination Centre, is designed to monitor the dark web and identify crypto wallets involved in illicit transactions, CNBC reported on Sept. 21.

The intelligence tool will reportedly compile transaction records, including addresses, timestamps, dates, exchanges used and the nature of services rendered. It will also send alerts automatically upon detecting suspicious activity, such as unusually high transaction volumes.

One of CIAT’s important components is the creation of a database of known cryptocurrency exchanges worldwide and their respective contact information. This feature will serve as a resource for law enforcement agencies to establish communications with those platforms, especially during investigations, the report added.

India ranks first in overall crypto adoption, according to blockchain data platform Chainalysis’ 2023 Global Crypto Adoption Index. The country leads the list’s top 20 in grassroots adoption and cryptocurrency market. However, the growing crypto interest in the country has also attracted ill-doers to conduct illegal activities using the technology. According to the statistics viewed by CNBC, Indian investors have lost roughly Rs953 crore ($10.2 billion) to crypto scams.

In April, The Delhi Police arrested four individuals for allegedly cheating over 500 people of crores of rupees. Meanwhile, two suspects were arrested in an alleged peer-to-peer (P2P) crypto scam in Ujjain, India in July. Local authorities seized some fake bank accounts, ATM cards, and other documents. The suspects allegedly used counterfeit IDs to scam Binance P2P users.

In August, local authorities exposed a massive cryptocurrency scam involving millions of dollars in August.