Author: Hrvoje Kustec
Date of Publication: 16/12/2022
This year, crypto-related hacking has high activity. Since the beginning of October, approximately $718 million worth of cryptocurrency has been stolen, bringing the total for the year to over $3 billion. However, numbers are currently 65% lower than where they were at the end of July in 2021. In addition, revenue from scams has roughly decreased in accordance with Bitcoin prices from January 2022. Not only is scam revenue declining, but the total number of individual transfers to schemes in 2022 is at its lowest point in the previous four years. In addition, these figures imply that less individuals than ever are falling for Bitcoin frauds.
Investment scams: Pump-and-dump schemes are an example of investment fraud. A fraudster will convince you to purchase an obscure cryptocurrency at a "cheap price," promising that the asset's value would soon soar. When you purchase, the price increases. However, later the con artist sells off their holdings at a higher valuation. That is causing the price to drop and leaving you and any other victims in the red.
SIM- Swap scams: This is also one of the most recent types of crypto scams that exist today. They take place when a con artist obtains a duplicate of your SIM card and has full access to your phone's data. As a result, the victim may not even be notified. The victim's cryptocurrency accounts may be already compromised and deleted.
Fake Crypto Exchanges and Crypto Wallets: Your social media accounts will show you websites that promote affordable Bitcoin with huge returns on the initial investment. When customers pay a hefty initial charge, they are routinely prompted to spend additional money. In addition, you'll probably discover that your money is missing when you try to withdraw it.
Upgrade scams: Scammers trying to persuade customers agreeing to fraudulent transactions or giving over their private keys represent one of the most immediate concerns.
Phishing scams: Although they have been around for a while, phishing schemes are still widely used. To get personal information such as the password to a cryptocurrency wallet, scammers send emails with nefarious links to a fraudulent site. It is troublesome to change the cryptocurrency key. Therefore, each key is exclusive to a wallet. As a result, a new wallet must be made in order to change this key.
Tips for avoiding scams
Investment scams are obvious once the provider claims there are huge returns on investment and there is no risk regarding your loss of money. Never enter secure information from an email link to protect yourself against phishing schemes. The individual has to go directly to the official website to verify it. Also, regarding the scams such as fake crypto exchanges and crypto wallets, stay with reliable exchanges and wallets with a substantial user history to avoid similar frauds. In fact, you should assume a wallet's website is a fraud and move on if it makes an attempt to look like a well-known company. Last, you can prevent SIM swap frauds by using strong passwords and security questions along with locking the phone with your service provider.
In a nutshell
Nobody enjoys a crypto bear market, but there is one positive aspect. Criminal cryptocurrency activity has decreased slightly alongside that of respectable activity. However, it appears that criminal activity is more robust to price declines. Compared to respectable quantities, which are down 36% year over year, illicit volumes are only down 15%. The US dollar is the most often used currency for these kinds of fraudulent transactions. Even though there are many scams existing in the crypto market, more users know how to spot possible scams right away because that is not something new and unseen. However, the numbers of illicit activity are still high. Yet with new security protocols, there is hope that fraud can be slowed down in overwhelming the cryptocurrency market. There is no denying that cryptocurrencies have been used in illegal behavior, but the same can happen with any type of money in existence. The most important action users can take is to protect their private information as best as they can.