- Crypto remains the top payment method in fraudulent activities.
- Virtual currencies will become an integral part of the digital economy.
Nobody said no to a profitable opportunity. That’s why cryptocurrencies are gaining a lot of attention from users around the globe. However, the delusion of entering into a prosperous space can turn into a nightmare within minutes. This often happens when newbies get in contact with malicious actors in the space. A recent incident came into light in Longmeadow, Massachusetts.
Scaling Landscape of Crypto and Frauds
According to Better Business Bureau (BBB), a not for profit organization, such fraudsters try to get friendly and lure a potential victim into the trap. In the Longmeadow case, a fraudster leveraged a woman’s economically weak background and showed how the cryptocurrency sector can be a game changer for her. It surely was, but in the opposite way.
According to the news, both met on a dating app where the man persuaded her to invest into cryptocurrencies and eventually vanished. Such incidents are a regular occurrence in mainstream finance too. BBB has previously issued warnings against such fraudulent attempts.
They recently highlighted that malicious actors are trying to leverage the Turkey and Syria earthquake scenario. People sending donations for aid should deliver the sums to trusted charities only. Moreover, they should avoid the group funding sites as there’s no evidence of where the money is going.
Romance frauds are increasing worldwide. The Federal Trade Commission (FTC) reports that cryptocurrencies are on top when it comes to payment methods in majority cybercriminal acts. Malicious actors executing sextortion activities, another kind of fraudulent scheme, asks for virtual assets transactions. Furthermore, the agency revealed that 58% of such acts start on social media platforms.
Several people deem the Securities and Exchange Commission (SEC) a hostile force against the cryptocurrency industry. But the malicious acts in the industry makes asset security a priority. Gary Gensler, SEC chairman, said during a Twitter Space hosted by the US Army that around 15,000 crypto assets will fail.
Users can witness several of these fraudsters in crypto community channels on Discord, Reddit, Instagram and more social media platforms. Users must avoid accepting suspicious links and report them in communities. Cryptocurrencies are becoming a global phenomenon with nations like El Salvador and the Central African Republic (CAR) accepting Bitcoin as their legal tender.
Skilled hacks are another issue to be handled in the digital asset sector. In August 2021, a bunch of hackers stole $610 Million worth of crypto assets from the Poly Network, making it the greatest attack in decentralized finance (DeFi). However, they returned the funds to the organization and revealed that they wanted to highlight the ecosystem’s vulnerabilities.
Digital assets will become an important part in the metaverse. Experts believe it to be the next chapter of the Internet where users will spend a majority of their time. In that case, robust security is needed to eliminate bad actors from the game.
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.