Over the years, the use of cryptocurrencies has become more popular around the world. Many more people now know what cryptocurrencies are, compared to what was known about them 3-5 years ago, which means the market has come a long way. . And while many people have faith in this asset class, there are also some who have been hit hard by scams.
If cryptocurrencies are not only used for scams, it cannot be hidden that it is one of the most recurring activities. Year after year, and with the popularization of cryptocurrencies, criminals have found in this type of asset an option to carry out different types of scams and get their hands on large sums of money which, in most cases cases, cannot be traced and are quite profitable.
Since the first cases of cryptocurrency scams began to be recorded, statistics have been created that allow us to compare the rise and fall in the popularity of this activity. And what has surprised the whole world is that currently the amount of total revenue from cryptocurrency scams has decreased from 9 million to less than 2.7 million from the level recorded in 2020.
About the report
At first glance, this report may seem a bit confusing. First, it was issued by chain analysiswhich is quite reliable and indicates that the total revenue from cryptocurrency scams decreased from 9 billion to 2.7 billion, this taking into account the level that had been reached in 2020.
The problem is that this same report revealed that the number of individual payments to fraudulent cryptocurrency addresses increased from 5 million to 7.3 million, a 48% increase in the number of victims of individual scams. This suggests that although cryptocurrency scams have increased, the level of sums scammed has gone down as the amount of scams is getting smaller and smaller.
What the report commented on was that these scams were done with different schemes, 6 of them were Ponzi schemes which amounted to just under $7 billion in 2019 and double that in 2020. At that time, we can see a peak in the level of cryptocurrency scams which may be related to the massification of the use of this asset class, but today this figure has decreased.
According to the report that was released in 2020, almost all revenue from cryptocurrency scams was made on a small scale. That year, the biggest scam was carried out on Mirror Trading International for approximately $589 million in some 470,000 transactions. At the time, it was determined that cryptocurrencies were being used as a money laundering and cash withdrawal mechanism and it was revealed that the company had some 16,000 bitcoins in unsecured investment funds. claimed.
The big difference between the scamming style of yesterday and today is that scammers use different strategies and different targets. Previously, exchanges and similar services where there were large amounts of cryptocurrencies were much more targeted and were much more successful scams, but now the security standards of exchanges have been raised and scammers have turned to retail investors.
Individual investors are in danger
As we discussed earlier, the level of revenue from cryptocurrency scams is down from 2020, but the number of cryptocurrency victims has increased. This means that cryptocurrency scams are still happening, but on a smaller scale, which represents significant losses for retail investors.
Major cryptocurrency scams have taken place in different parts of the world, and patterns are beginning to emerge. Typically, scammers use social media to contact victims to build relationships and then ask them for money to sort out financial issues. As soon as the victim transfers the money, the scammer disappears or continues to steal money until he has taken everything from the victim.
A similar pattern has also become quite common using social media, where scammers initiate romantic relationships with victims and recommend them to invest in cryptocurrencies. After a short time the profits are apparently high and the investors decide to keep putting money in and when they want to withdraw it they cannot because it is a scam.
This type of situation affects men and women all over the world and the authorities cannot do anything about it yet, but in the meantime they are issuing warnings and alerting the next and possible victims.