Crypto scams riskier than payment fraud schemes, report reveals

[Mercury]

Crypto scams have been the public enemy number one in the United States (U.S) posing more risk than online romance and payment theft frauds, a recent report reveals. Better Business Bureau, a nonprofit organization, recently published a report about risks and scams related to emerging technologies.

The findings of the report were centered on the risks associated with emerging technologies. A key finding was that victims ranging from age 25 to 44 faced with an average dollar loss in crypto-related fraud of $3000.

This somewhat high figure was the consequence of not having a fundamental knowledge of digital assets; the nefarious actors took advantage of this lack of knowledge and scammed the clueless folks.

Recently PlusToken scam had left most of the cryptocurrency angelish investors in awe while they witnessed one of the largest cryptocurrency scams in history.

Crypto scams by area

About 32 percent of the crypto scams involved cryptocurrency exchange for goods and services, and even fiat currency, while 23.4 percent of scams involved buying of digital assets as supposed investment opportunities.

Approximately one-third or 31 percent of these cryptocurrency scams leading to a financial loss involved a firm called C2CX, based in China.

It is noteworthy that the crimes related to cryptocurrency measured in scam statistics include the loss of funds caused due to the hackers infiltrating the vulnerable exchanges. The report does not provide detail of data about how much of risk-rated rose from these types of hacks as compared to the fraudulent schemes.

The report mentioned ten different kinds of scams, and crypto was ranked right above the frauds related to an online purchase, which was ranked as third.

Nonetheless, cryptocurrency was behind the employment scams that ranked as the second most risky kind with 93.8 index rating: internal measurement mechanisms that measure the variants including exposure, monetary loss, and susceptibility.

Featured Image by Rawpixel

Source