A new study found that cryptocurrency-related fraud nearly doubled in the past year. However, the projections for the future are not optimistic as the report predicts another significant increase in the number of cases in 2021.
The research has scanned over 300 million websites
According to the “Cryptocurrency Scam Report” published by anti-fraud firm Bolster and published with Bitcoin.com News, the correlation with the surge in popularity of cryptos and the coronavirus pandemic has increased the number of crypto scams in 2020.
Bolster analyzed over 300 million websites and found that more than 400,000 crypto scams were created in the past year. In fact, that’s a 40% increase compared to 2019 numbers, the study says.
With that number, and given the proliferation of Bitcoin (BTC), crypto scams could see a 75% increase in 2021, Bolster explained.
Shashi Prakash, co-founder and CTO of Bolster, told Bitcoin.com News:
The rise in crypto fraud is damaging the industry’s goal of establishing credibility as an asset class and needs to be addressed as these currencies become more mainstream and less sophisticated people start buying and selling them. Proactive elimination of fraud and fraud gives a currency the ability to differentiate itself faster and build trust in the market.
Chainlink is among the top three cryptos used for the fraud attempts in 2020
Most of the scams involved fake prizes, giveaways or competitions, and celebrity imitations. Elon Musk, John McAfee, and Yusaku Maezawa were the top three celebrities to be impersonated in 2020.
The three most common cryptos for the scams were Bitcoin (BTC), Ethereum (ETH) and Chainlink (LINK). In addition, scammers posed as crypto exchanges like Binance, Coinbase, and Gemini.
The Cryptocurrency Scam Report provided more details about the correlations found during the investigation:
Perhaps the worst condition we’ve observed is the correlation between the value of the cryptocurrency and the hype and scams. For virtually all of the major cryptocurrencies that we monitored, we observed a direct correlation between the increase in trading volume of individual cryptocurrencies and the value and activity related to phishing and fraud.
What do you think of the results of the study? Let us know in the comments below.
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