- A new report says crypto frauds have risen in ranking.
- Pig butchering is the new favorite for the fraudsters in the digital asset space.
- Online purchases remain the top concept to lure the victims.
Beware, Bad Actors are Rising in Cryptosphere
The world was yet to recover with the rug pulls in the crypto sector, a new malicious concept, pig butchering, has entered the game. According to a report published by Better Business Bureau Foundation, the cryptocurrency sector has become the second riskiest sector susceptible to frauds in 2021 rising from seven in 2020.
Pig Butchering leverages intimacy and compassion to lure the victims into the trap. An unknown person contacts them and poses as a friend, and sometimes even a lover to pull funds. The concept points towards fattening the prey before slaughtering them. The offender slowly asks for a small amount of deposits on fake exchanges, and allows the victim to withdraw a few times to gain trust.
But as the things escalate, and the lootbag becomes fatter, the fraudster vanishes after attaining the target. As the crypto sector is growing, so are the number of bad actors in the space. Investors in the sector have lost over 3 Billion USD across 125 hacks in 2022 alone, with the Ronin Bridge collapse being the biggest attack of the year. People believe Lazarus, a South Korean hacker group, was behind this act.
The report also shed light among other statistics linked to the fraud victims. Monetary loss has increased by 47% since 2020 and people have lost $169 on an average through attacks. While online purchase attacks stay on top of the charts, crypto and employment holds number 2 and 3 respectively. Digital asset hacks hold the crown in average losses with 1,200 USD, followed by employment (900 USD) and online purchase (101 USD).
Talking about the age group, older people aged over 65 remain top victims of the attacks while losing 200 USD on an average. Fake websites, social media platforms and emails stay the favorite choice of attackers to lure the victims. This also explains why the online purchase hacks are at the peak.
The report also mentions some guidelines regarding how to stay clear of such frauds. This includes users to avoid clicking any unknown links, sharing information with anyone they have not met IRL, sending money to anonymous persons and more. Cyber space is attracting a lot of attention from tech enthusiasts as well as the ones who want to exploit them.
Attack happens due to scarce knowledge regarding particular concepts. People need to stay cautious and stay away from anything they suspect to be a fraud. Before giving anything a go, they should think and research about it first. The developers must monitor and integrate firewalls and other softwares to increase the security. We should take inspiration from Google as it always suspects the majority of links as shady. If you don’t believe this, try sending multiple links to another email address.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.