According to experts and their recent examination of the cryptocurrency ecosystem and the latest Bitcoin scams, crypto crime is rising and 2020 is one of the worst years for users and best years for scammers.
In fact, the spread of crypto and Bitcoin scams in 2020 has not been prevented. Our Bitcoin scam news show that a new report released by the digital asset intelligence firm CipherTrace on June 2 shows that the value of all ill-gotten funds siphoned through crypto crimes over the first five months of the year.
As it stands, the number of crypto scams and money that was taken through them stands at a whopping $1.4 billion, making 2020 potentially the most active year in regards to crypto-related thefts, hacks and fraud.
As the crypto crime is rising, the report also states that if things continue at the same rate, the total volume of stolen crypto for 2020 has a massive potential – in fact, it could get close to reaching the $4.5 billion mark set in 2019.
Criminals appear to be capitalizing on the ongoing COVID-19 pandemic to target unsuspecting individuals by luring them in a variety of crypto related phishing campaigns, ransomware as well as darknet marketplace fraud.
Additionally, many of the Bitcoin scams this year have reportedly made use of email campaigns. In that manner, they impersonated various coronavirus-related official groups including the World Health Organization (WHO), the Red Cross, the Centers for Disease Control and Prevention and others – to solicit payments and donations in the form of cryptocurrency.
Lastly, we can see that CipherTrace officials claim that of the $1.36 billion in crypto stolen so far this year, around 98% of the total value (which is nearly $1.3 billion) can be attributed to fraud and misappropriation rather than hacks and direct thefts.
In order to gain a better understanding as to why crypto crime is rising, media has spoken to John Jefferies, the chief marketing officer and financial analyst at CipherTrace. As he said in the cryptonews, it is possible that by the time the year comes to a close, the amount of funds netted by criminals could exceed the expectations of this report and reach a $4.5 billion figure.
Jefferies also noted that the largest contributor to this year’s crypto crime was the Wotoken’s alleged Bitcoin-dollar Ponzi scheme which emerged from China. As he said:
“Retail investors should be wary of any company that uses hyperbolic statements and promises of extraordinary returns to lure them into participating. If WoToken had been required by regulatory agencies to provide detailed investment prospectus and audited financial statements, they wouldn’t have been able to launch their scheme and fool more than 700,000 victims. Many VASPs have dramatically improved their security posture, making it harder for hackers to steal from the platforms themselves.”
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