Crypto scams are fraudulent schemes that use cryptocurrencies or blockchain technology to deceive investors or users. These scams can take many forms, such as fake initial coin offerings (ICOs), phishing scams, Ponzi schemes, or ransomware attacks. Scammers often use social engineering tactics, such as creating fake websites or social media accounts, to gain the trust of victims and lure them into investing or sharing their private information. Since crypto has been booming over the past few years, more and more people are vulnerable to these scams, especially when victims of most of these scams are merely a few clicks away on any social media website. Here are some stats that gauge the weight of how much money in crypto people have been losing in the past few years, and what those numbers will look like in the coming years.
A study by Chainplay.gg stated that over $30 billion was lost in crypto scams over the last ten years. That’s a massive number, considering $12 billion of that amount was lost in the last year itself. Over 673 counts of scams contributed to this gigantic sum of money that was stolen out of cryptocurrency wallets worldwide. Out of all global attacks on crypto wallets, the highest number of attacks were noted in the United States. On the other hand, the most amount of money (in US dollars) was scammed in Turkey. Furthermore, experts predict that 2023-2025 will be even more financially catastrophic, with 16 billion dollars poised to be lost in cryptocurrency scams in 2023 alone. This number is further estimated to rise to $20 billion by 2025. Despite such a huge amount of money lost to scams (and given the security detail of cryptocurrencies), merely one-fifth of the total amount has been recovered so far.
Crypto scams are common for several reasons. Firstly, cryptocurrencies and blockchain technology are relatively new and complex, which can make it difficult for the average person to understand and evaluate their risks. This lack of understanding can make people more vulnerable to scams and fraud. Secondly, the decentralized and anonymous nature of cryptocurrencies and blockchain technology can make it easier for scammers to operate without detection. Transactions can be difficult to trace and recover, making it challenging to identify and prosecute scammers. Lastly, the hype and speculation surrounding cryptocurrencies have attracted a lot of attention from investors seeking to get rich quickly, creating an environment where scams can thrive. Scammers often take advantage of people’s greed and FOMO (fear of missing out) to convince them to invest in fraudulent schemes.
This is all the more reason to stay vigilant and cautious when dealing with cryptocurrencies and to do your research before making any investments or sharing personal information.
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