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No matter how developed the society would get and technology will upgrade, there might still be loopholes that bad actors would take advantage of
Scams have been a common phenomenon that dates back to quite ancient times where it has not changed so much in its forms but got way easier to trick people than ever before. Fundamentally, now a scammer can reach millions of people on his wish without doing much effort on a single press of a button. This was made possible due to the internet and such other technological advancements that have just changed the rules of this traditional and long existing game.
It’s like the internet was not enough to give scammers opportunities then cryptocurrencies came up and led the space being an almost perfect tool for a scam or such cybercrime. Although the whole emergence of cryptocurrencies depends upon the concept of decentralization and privacy.
But as soon as they started capturing the attention of people all around due to its increasing popularity, either by seeking opportunities or out of FOMO, they started investing heavily into crypto assets. This mindless buying of cryptocurrencies and digital assets like NFTs accelerated during Covid-19 Pandemic.
Increasing popularity, demand and capital in the crypto space seems as an opportunity to scammers. Pandemic is also responsible for bringing a paradigm shift in behavior of many mainstream tech companies and businesses who started looking towards the digital world considering its the upcoming future. This also results in luring more customers towards crypto that scammers trapped using their tactics.
As reported by a prominent blockchain data aggregator platform, Chainalysis in January this year, there were about $14 billion worth of cryptocurrencies stolen from the investors who got scammed at any point throughout the year 2021.
Take example of two South African brothers for instance, who in 2021 defrauded their investors and stole about $3.6 billion worth capital from a crypto investment platform. It was in February this year itself when the FBI had also said that it had arrested the culprit of a fake crypto platform scam where the couple managed to defraud investors with a similar amount of $3.6 billion.
Multiple reasons are there for these instances to take place easily, but the most basic reasons for people getting trapped in such schemes is lack of awareness and impulsive buying. In order to be in the category of smart buyers or not getting trapped in such scams while losing hard earned money, choose investments wisely.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
