A new study shows that cryptocurrency-related scams have almost doubled in the last year. However, because the report predicts that the number of cases in 2021 will further increase, the forecast for the future is not optimistic.
Research scanned more than 300 million websites
According to the “Cryptocurrency Scam Report” published by the fraud prevention company Bolster and shared with Bitcoin.com News, the correlation with the surge in cryptocurrency penetration and the coronavirus pandemic has driven the number of cryptocurrency fraud in 2020.
Bolster analyzed more than 300 million websites and found that more than 400,000 crypto scams were created in the past year. The study stated that, in fact, it increased by 40% compared to 2019.
With such a number, and considering that Bitcoin (BTC) is becoming more mainstream, crypto scams may witness a 75% growth in 2021, Bolster said.
Shashi Prakash, co-founder and CTO of Bolster, told Bitcoin.com News:
The rise of crypto scams does damage the industry’s goal of establishing credibility as an asset class, and as these currencies become more mainstream and less savvy people start buying and selling them, this issue must be resolved. Actively eliminating fraud and scams provides an opportunity for currencies to stand out and build trust in the market faster.
Chainlink is one of the top three cryptocurrencies used for scams in 2020
Most scams are related to fake prizes, giveaways or sweepstakes, and celebrity impersonation. Elon Musk, John McAfee and Yusaku Maezawa are the top three celebrities to be faked in 2020.
In addition, the top three cryptocurrencies most commonly used in this scam are Bitcoin (BTC), Ethereum (ETH) and chainlink (LINK). In addition, crooks also impersonated cryptocurrency exchanges such as Binance, Coinbase, and Gemini.
The Cryptocurrency Scam Report provides more detailed information about the correlations found during the research:
Perhaps the most stringent condition we have observed is the correlation between the value of cryptocurrency and hype and fraud. In almost all major cryptocurrencies we monitor, we have observed a direct relationship between the volume and value of individual cryptocurrency transactions and the increase in phishing and fraud-related activities.
What is your opinion on the findings of this study? Let us know in the comments section below.
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