Covid-19 Pandemic Sweeped Away Cryptocurrency Scammers

Priyanka Kulkarni
Priyanka Kulkarni, post-graduated in Business Administration holds worthy experience in market research and investment banking. She is passionate to flaunt her perception towards cryptocurrencies.
  • With the outrage of COVID-19 pandemic, the scammers are taking advantage of it, though, media outlets and governments have warned about these kinds of scam, but still, it’s an annoying prospect.
  • As per the data, the cryptocurrency scams have tumbled 61% between March 13 and March 31, while it has recovered a bit since then.
  • While the COVID-19 somewhere has struck the set of scammers, it is offering email spamming tactics through which they can fraud their victims.

With the outrage of COVID-19 pandemic, the scammers are taking advantage of it, though, media outlets and governments have warned about these kinds of scam, but still, it’s an annoying prospect.

The crypto scams reduced since early March

However, we cannot assume the effectiveness of these scams in the fiat ecosystem. Below-mentioned is a graphical representation that depicts the crypto scams reduced than ever since early March when the COVID-19 effect started booming in the western countries.

As per the data, the cryptocurrency scams have tumbled 61% between March 13 and March 31, while it has recovered a bit since then. Till now, all the scams revenue is centralized to investment scams and Ponzi scams that together combine to make up the majority of scamming activity.

While the COVID-19 somewhere has struck the set of scammers, it is offering email spamming tactics through which they can fraud their victims.

Scammers try to create their stories around COVID-19

Usually, there are two common types of cryptocurrency scams found in the market, Phishing scams and blackmail scams.  The phishing scammers try to trick the victims by imitating a real business, charity, or a famous individual body. During the COVID-19 pandemic, the phishing scammers try to build their stories around COVID-19.

Moving to blackmail scammers, they too contact victims through email and claim the victims to have their compromising information with them that they threaten to expose with the victim’s closed once.  But in the COVID-19 situation, the scammers are threatening to spread it to the victim’s family unless they pay up.

Looking at the total value received weekly, and the number of individual transfers made to the twenty most active Ponzi schemes and investment scams, 94% of all scam activity performed in 2020.

Summing up, we can predict that COVID-19 is providing both phishing and blackmail scammers with new fraudulent narrations to induce victims. The price of cryptocurrency drops due to the pandemic has tremendously lowered the revenue of Ponzi Schemes and investments that results in boosting most of the crypto scamming activities.

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