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- The Better Business Bureau (BBB0 has recently highlighted crypto to be among the riskiest frauds of the previous year.
- Crypto frauds rose to the second riskiest type in 2021 because of a reported increase in susceptibility and exposure, says the report.
- The BBB has also suggested a few ways to avoid fraud.
The Non-Profit Organisation that seeks to promote marketplace trust, the Better Business Bureau (BBB), recently released a report signifying the methods and impacts of several frauds that occurred in North America last year.
BBB says that the frauds related to cryptocurrencies were among the riskiest types in the year 2021. It highlighted that crypto frauds rose from the seventh riskiest type for consumers as of 2020, to be the second riskiest last year. And online purchase frauds were the riskiest type for the consumers in 2021.
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According to the report, Crypto frauds rose to the second riskiest type in 2021 because of a reported increase in susceptibility and exposure. And although crypto frauds account for only 1.9% of the frauds reported to the BBB tracker. But the median dollar loss was $1,200 which is far higher than the overall median loss of $169. And that over 66% of people reported losing money when targeted by these types of frauds.
The Better Business Bureau’s advice to avoid crypto frauds is to be wary of anyone offering the chance to make money instantly with no or minimal risk. And watching out for potential hacks of any friend’s account on social media and avoiding using online payments mode while making transactions with unfamiliar people.
The scepticism about frauds and such activities has always hovered around the asset class, and maybe they are true to some extent. For instance, American Officials recently confiscated funds worth $500,000 of Bitcoin, which the fraudulent managed to take out from an elderly.
But then, every industry comes with certain risks, and some entities and countries are also optimistic about the asset class. Hence, it also lies in the hands of the users to be safe and secure while transacting and dealing in the asset class.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
