Between 2017-2020, Crypto Crimes Rose by 300%

Leverage on cryptocurrencies to perpetuate cybercrimes isn’t a new phenomenon. Investopedia reports that over $9 million is lost to crypto scams every single day. The US champions these numbers seeing an average increase of crypto scams scale by 300 percent every year. 

Aside from the United States, a survey by Cryptohead includes the United Kingdom and Australia as thriving spots for these crimes. In 2020 alone, over 8,800 crypto scams were reported in the UK. Australia was way worse with over 9,000.

The study revealed that these scams revolved around the biggest known digital assets. Bitcoin leads the way with the highest reported cases and Ethereum follows closely. There is a major concern that these cases might be occurring a lot more often than it is reported. 

The Top Three Crypto Scams

There is a long list of endless tactics that scammers employ to get their victim; as technology continues to evolve, so as their tricks. 

A major coordinated scam is linked to Initial Coin Offerings (ICOs). Victims are often cornered to invest in fictional cryptocurrencies to make massive gains, the results often wouldn’t be blissful memories. Bitconnect and Pincoin have lost $2.6 billion and $600 million to these scams respectively. 

Other sorts of tactics are presented through the pump and dump tactics. Initial investors pull in resources from ignorant people into low market cap assets. When these investments are big enough, these initial investors pull away, carting off large volumes of funds from the unsuspecting followers. 

Hacks on exchanges and wallets make up for the third type of cryptocurrency scams. Hackers initiate flash loan attacks as in the case with the recent Binance Smartchain attack which saw $167 million sucked away. 

The irregularities that occur by leveraging crypto assets have been a major concern to governments globally who look to assuage the situation by setting up strict regulatory policies. 

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