A notable rise was observed in recovery room fraud, which saw a 59% increase compared to the previous year. This type of fraud involves scammers recontacting previous victims of investment scams, posing as lawyers, investigators, or regulatory officials offering assistance in recovering lost funds. These fraudsters typically demand upfront fees or personal information, exploiting the victims’ desperation for recovery.59% compared to the same period in 2023 is considered a very large increase in fraud cases. I do not know what is the reason for this large increase. Is it a lack of knowledge among the victims or an increase in experience among the fraudsters and the use of advanced fraudulent methods?
I think it's all about the market cycle, as we are entering the bull run, scammers and criminals are upping this activities as well as they know that many are going to be interested on crypto once more because they think that they are going to make a lot of money in this cycle. And you know how intelligent this criminals is because as per the article, they are contacting those who have been their victims before and maybe they are going to fall for the same trap.
Beginners are the ones who are easily scammed. In the world we live in, there are options for refunding money if you do not like the product, a money-back policy, or a 30-day guarantee. Therefore, anyone who uses cryptocurrencies, especially someone who hears that it is a good way to collect millions, will be easily scammed, and then he will decide to abandon all investments.
We keep hearing about a rise in crypto scams, when indeed it is down to the victims who have refused to learn how to protect themselves and avoid falling victim to scammers.
Beginners are the ones who are easily scammed. In the world we live in, there are options for refunding money if you do not like the product, a money-back policy, or a 30-day guarantee. Therefore, anyone who uses cryptocurrencies, especially someone who hears that it is a good way to collect millions, will be easily scammed, and then he will decide to abandon all investments.Too bad, but you are right. For the very fact that there is a rise in 'recovery room' scam, it simply means so many people use crypto, but do not understand it, they believe it is similar to centralized institutions were the central authority can confiscate, block and reverse if there is a need for it. In the BTC network, unless funds are deposited into a custodial service, it cannot be recovered.
The Financial Services and Markets Authority (FSMA), Belgium’s financial regulatory agency, has published its mid-2024 report, highlighting a significant increase in fraudulent activities, particularly involving trading platforms and cryptocurrency scams...I am not surprised if there is a report that claims that there is an increase in fraudulent activities because the economy is getting hard, people have been laid off work, more people are looking for any means to make money, and because cryptocurrency is one of the newest innovations in the market, scammers will always try to take advantage of it. As the popularity of cryptocurrency is on the rise, it is normal to also have an equivalent rise in crimes related to it.
I am not surprised if there is a report that claims that there is an increase in fraudulent activities because the economy is getting hard, people have been laid off work, more people are looking for any means to make money, and because cryptocurrency is one of the newest innovations in the market, scammers will always try to take advantage of it. As the popularity of cryptocurrency is on the rise, it is normal to also have an equivalent rise in crimes related to it.Personally, I do not think that the increase in fraudulent activities has much to do with the difficult economic situation and the increase in unemployment, but yes, it has to do with the increasing popularity of cryptocurrencies and the desire to get rich quickly, which in my opinion is the primary reason for attracting fraud victims. Most of these victims are eager to get rich quickly, so they fall easy prey to fraud.