So far, cryptocurrency scammers have stolen $30 billion of individuals’ assets, and it is predicted that this figure will increase by 2025.
In recent years, scammers have used blockchain and cryptocurrencies to deceive investors. Cryptocurrency fraud is carried out in various ways, including offering fake token purchases, phishing scams, Ponzi schemes, or ransomware attacks. Cybercriminals usually use social engineering tactics, such as creating fake websites or social media accounts, to gain the trust of victims and encourage them to invest or share their personal information.
Due to the remarkable growth of the cryptocurrency industry in recent years, the number of people exposed to cryptocurrency scams has increased. On the other hand, the ease of scamming has facilitated more criminal activities.
Chainplay.gg studies show that more than $30 billion of fraud has been committed in the cryptocurrency sector over the past 10 years. Only $12 billion of this amount relates to cybercriminal activities last year, which is a significant number. More than 673 of these frauds have been carried out by stealing cryptocurrency wallets. Wallet theft attacks have targeted more American users. On the other hand, the largest amount of money stolen in this sector belongs to Turkey.
According to Gizmochina, we are expected to see a significant increase in the volume of cryptocurrency fraud between 2023 and 2025, and according to estimates, this figure will increase from $16 billion this year to $20 billion by 2025. Interestingly, only one-fifth of this amount of stolen capital has been recovered.
Fraud in the cryptocurrency industry has become widespread for various reasons. Firstly, digital currencies and blockchains are relatively new and complex technologies, and these features have made it difficult for ordinary people to understand them accurately. The lack of a correct understanding of the functioning of the cryptocurrency market has greatly increased the risk of individuals falling prey to fraud. Secondly, the decentralized and anonymous nature of cryptocurrencies and blockchains can make cybercriminals’ work easier as it is harder to prosecute them legally. Finally, wrong advertising and speculation about cryptocurrencies have led many unfamiliar individuals to think that investing in this area will lead them to wealth overnight. Scammers often take advantage of people’s greed and entice them to invest in fraudulent schemes.