The crypto-mania is gaining popularity all around the world, and an increasing number of people are choosing to invest in it. The trading of cryptocurrencies has turned a number of people into multimillionaires in recent years. On the other hand, it turned out to be a disaster for tens of thousands of investors, who lost their crypto assets after falling victim to frauds and finding themselves involved in fraudulent activities.
The situation has been exactly the same ever since the year 2022 began. Scams involving cryptocurrencies continued to rise at a rapid rate last year and continue to do so now.
Crypto Scams Continue to Haunt Investors Globally
Since the beginning of 2021, over 46,000 people have come forward to report losing over one billion dollars in bitcoin to scammers, as stated in a recent study published by the Federal Trade Commission (FTC). (FTC). This is a bigger percentage of lost money than any other kind of payment, with one dollar out of every four being lost.
According to the findings of the study, the top cryptocurrencies that users reported using to pay scammers were Bitcoin, sometimes known as the “king of cryptocurrencies,” the stablecoin Tether, and Ether, which is currently the second-largest cryptocurrency by market value.
Regarding this matter, the FTC noted,
Swindlers are using crypto as “an increasingly prevalent means to get people’s money,” as the phrase puts it.
“Cryptocurrency has a number of characteristics that make it appealing to con artists,” which “may help to explain why the reported losses in 2021 were approximately sixty times what they were in 2018,”
Reasons for the Existence of Crypto Scams:
To begin, there is neither a bank nor any other centralised body that has the ability to identify transactions as potentially fraudulent and work to stop fraud before it occurs. Second, once a cryptographic transaction is completed, it cannot be undone in any circumstance. People do not have a thorough understanding of how cryptography works, which is the last point but certainly not the least.