Scams involving that cryptocurrency are becoming more popular in 2021, according to recent incidents.
Cryptocurrency is gaining traction in the media in 2021, and so are crypto scams. Scams involving cryptocurrency have reached an all-time peak in 2021. Cryptocurrency money laundering is not a modern phenomenon. By the end of April, crypto criminals had laundered $432 million, according to the CipherTrace survey. Defi accounted for about 56% of the total volume laundered.
Notably, this figure exceeds the cumulative loss of US$1.9 billion in 2020, as well as the US$4.5 billion in cryptocurrency and bitcoin fraud damages in 2019. Elon Musk impersonators embezzled $2 million, according to a recent related citation of cryptocurrency fraud. The robbery gets staged as part of a ruse. Cons presenting as celebrities claimed to be stars and vowed to multiply cryptocurrencies investments, but instead pocketed the money.
Five more cryptocurrency scams that are impossible to recognize
Altcoin Pumps and Dumps
Altcoins are regarded as one of the most affordable and illiquid penny stocks with limited market capitalizations. The crypto pump and dump is a feature of penny stocks, and Altcoin is attempting to enter the trend. However, due to their volatility, scammers and criminals often target Altcoins.
ICOs that are not authentic
Fake Initial Coin Offerings (ICOs) are still a problem that crypto investors are concerned about. In 2017, there was an outbreak of ICO scams, with the rate of fake ICOs reaching 80%. Fortunately, the number declined in the years that followed. Even today, fake ICOs are a source of concern for investors. Customers were defrauded of $6 million by Big Coin.
Virus and Malware-Induced Scams
It can be tedious to come up with new ideas and innovative ways to get into an investor’s pocket. Hackers and criminals use old malware and viruses to gain access to crypto wallets to avoid the overabundance of new ways to carry out wallet breaches.
Swindles involving nonfungible token
Nonfungible also known as NFTs, are very common right now. NFT is vulnerable to cloning. It has unique hashtag codes, and whoever regulates the hashtag codes has power. NFT hack recovery has been stated to be challenging in some cases because deciphering hashtag codes is not a simple task for the average person.
The Stroke gets postponed by Defi
The term “Decentralized finance” refers to an effort to modernize and transform conventional trading practices and models. Decentralized finance enables users to stake their cryptocurrencies in the hands of other users to maximize profits through interest payments. Although some reputable Defi platforms guarantee the highest possible returns on money lent, others are outright scams.
A report on crypto investment fraud gets declared by the Federal Trade Commission (FTC) on May 17th. A total of $80 million gets wasted in the scams. According to the Federal Trade Commission, cryptocurrency and bitcoin scams mainly target investors between 20 and 40 years age group.