A new study shows that cryptocurrency fraud has nearly doubled in the past year. However, the forecasts are not optimistic, as the report predicts a further significant increase in the number of cases by 2021.
Search More than 300 million websites scanned
According to the Cryptocurrency Scam Report published by fraud prevention company Bolster and reported by Bitcoin.com News, the correlation with the rise in popularity of cryptocurrencies and the coronavirus pandemic has increased the number of cryptocurrency scammers in 2020.
Bolster analyzed more than 300 million websites and found that more than 400,000 cryptocurrency scams were created last year. In fact, it’s a 40% increase over 2019, according to the study.
With that number and the growing prevalence of bitcoin (BTC), cryptocurrency-related scams could increase by 75 percent by 2021, Bolster said.
Shashi Prakash, co-founder and CTO of Bolster, told Bitcoin.com News:
The rise of cryptocurrencies undermines the industry’s goal of building trust as an asset class and must be addressed as these currencies become more mainstream and less experienced people begin to buy and sell them. Proactively eliminating fraud and counterfeiting is an opportunity for a currency to distinguish itself more quickly and build trust in the marketplace.
Link is in the top three cryptographic devices used for fraud in 2020
Most of the scams involved forging prizes, competitions or lotteries and impersonating celebrities. Elon Musk, John McAfee and Yusaku Maezawa are among the three celebrities who have embodied 2020.
In addition, the three most popular cryptocurrencies for fraud were: Bitcoin (BTC), Ethereum (ETH) and Chain Link (LINK). In addition, the scammers posed as crypto currency exchanges, such as Binance, Coinbase and Gemini.
The Cryptocurrency Fraud Report provides more details on the correlations found in the study:
Perhaps the most challenging condition we see is the correlation between the value of cryptocurrencies and hype and fraud. For almost all major cryptocurrencies we tracked, we saw a direct correlation between the increase in trading volume and value of individual cryptocurrencies and phishing and fraud activity.
What do you think of the results of the study? Let us know your comments in the section below.
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