Crypto-Currency experts and speculators have shared their concerns around the crypto-scams and have demanded a more fool proof and holistic crypto ecosystem, especially the one that is able to tackle and put a leash on Anti-Money Laundering kind of frauds and scams. Based on the recent increase in the crypto-crimes and the tactics used by the fraudsters/scammers, it is predicted that the number of such scams in 2020 will see the highest number of scams by the end of this year.
As per the recent report released by CipherTrace (a digital-asset intelligence firm) on June 2, the total value of the funds that have been scammed through the cryptocurrency-crimes since the beginning of the year 2020 is $1.4 Billion. As a result of this, the year 2020 has been considered to be potentially active due to frauds related to ransomware, darknet marketplace frauds and phishing campaigns.
The report further added that if these swindles remain active throughout the year of 2020, they have the potential to amass a figure around $4.5 billion by the end of 2020.
One of the mains reasons why people are getting scammed a lot is due to the on-going Covid-19 situation that has made people desperate and vulnerable to scams related to the pandemic. Although, there have been multiple types of scams currently on the loose related to the Covid-19 situation, some of the most prominent scam types include where the scammers impersonate to be official-coronavirus related groups such as the Red Cross, the Centers for Disease Control and Prevention and World Health Organization, luring users into make charities and donations in the form of cryptocurrency.
As per the recent analysis report shared by the CipherTrace, it has been mentioned that the majority of the scams currently being executed in the cryptocurrency industry are mainly because of the fraudulent activities and falsified representations (impersonations) and the less percentage of such frauds are attributed to direct thefts and hacks. CipherTrace has further added that in the crypto-crime market, the largest contributor is Wotoken’s alleged billion-dollar Ponzi scheme that has preyed on many victims in the running year.