The crypto scam epidemic has worsened recently, costing investors billions of dollars. According to a BanklessTimes.com analysis, as of August 2022, crypto scams had lost roughly $42B. That translates into a daily loss of an average of $189K a day.
“While there are many legitimate players in the cryptocurrency space, there are also many scammers looking to take advantage of unsuspecting victims,” says BanklesTimes CEO Jonathan Merry. He adds, “These incidences will continue growing as the crypto asset market becomes increasingly popular. This alarming trend results from scammers taking advantage of unwitting investors looking to make a quick buck or oblivious to the threats lurking in the space.”
Leading Forms of Crypto Scams
Crypto scams come in all shapes and sizes, but the most common ones in 2022 are exit scams and exploits. Exit scams are when a company suddenly disappears with its investors’ money, while exploits are when hackers take advantage of security vulnerabilities to steal people’s cryptocurrency.
This year’s largest heist was the Terra Classic Bank Run, which netted scammers $40B. The Ronin and Wormhole exploits are the other significant crypto scams that have happened this year. Scammers made away with crypto worth $625K and $326K from the projects.
Other common crypto scams include phishing attacks, Ponzi schemes, and fake crypto exchanges. Phishing attacks are where scammers try to steal people’s passwords and personal information by sending them fake emails or texts.
Protecting Yourself From Crypto Scams and Hacks
These scams have one thing in common: They’re designed to exploit people’s trust and greed. So if you’re considering investing in crypto, be sure to do your research first and always be aware of the risks involved.
Additionally, be vigilant when checking emails and texts. Make sure that the senders are who they say they are. Don’t click on any links or attachments unless you’re sure they’re safe.
Also, use strong passwords and two-factor authentication whenever possible. Moreover, Be careful if someone is trying to sell you a “hot” coin or investment opportunity. Finally, be careful when trading on crypto exchanges – only use trusted exchanges with good reviews online. Full story and statistics can be found here: An Average of $189K Was Lost Daily to Crypto Scams and Hacks Since the Beginning of the Year