Just think, the same being done with bitcoin. There'll be transparency in each and every transaction, but the funds send to those fake identities can't be recovered back.
Definitely it will be impossible to track the transactions and recover the money back but that is not my point. In the country like India where the large part of population is still very unclear about what Bitcoin is and don't feel safe to work with it. If Bitcoin will be used in such type of scams then how they will be able to trust it ? Even after the ban is lifted by supreme court, there is no strong government support for it. I have read somewhere that the government is still trying to take some measures in order to ban Crypto trading. Such scams will just add fuel to fire which will have a negative impact on the future of Bitcoin and on the future of emerging crypto enthusiasts.
Also, with btc, even if there is transparency, it is hard to recover the funds because they can send it to untraceable addresses like using mixers. But with traditional method like fiat money, they still have the chance to recover it, just determine who are the culprits in this corruption. And sue them, and they can return what was stolen.