$4.3 Billion in Crypto Lost to Scammers in 2019: Chainalysis
- The number last year tripled compared to the same in 2018.
Last year, more than $4.3 billion in digital currencies was stolen in various crypto scams, according to the latest report by Chainalysis.
Per the New York-headquartered company, the majority of the scams were linked to Ponzi schemes, including the PlusToken and OneCoin scams.
“The vast majority of that $4.3 billion went to just two large-scale Ponzi schemes, without which crime overall would account for just 0.46% of all cryptocurrency activity,” the security firm noted.
“Scammers take advantage of the unique position cryptocurrency currently occupies in the public eye: Most people have heard of it, and many believe it has “get rich quick” potential.”
Though the amount involved in scams dropped in 2018, the number tripled last year to surpass $4.3 billion, duping millions of victims.
Apart from Ponzi schemes, fake token sales, Phishing Phishing Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Read this Term, blackmailing, and fake mixers also contributed to the number.
“Over 2.4 million individual transfers were made to Ponzi schemes, a number that becomes even more incredible when you realize that the data above reflects just six individual Ponzi schemes in 2019,” the report stated.
Multi-billion dollar Ponzi schemes are the biggest culprits
The firm also pointed out that the figure is based on the reported number of the most prominent Ponzi schemes, meaning, in reality, this figure can surge further.
The average transfer to Ponzi schemes was $1,676 worth of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, second only to $4,188 taken in the average transfer to fake token sales, the report outlined.
“Scammers promise massive, outsized returns for those who invest in their fake companies, convincing victims to invest substantial sums in the hopes of a big payout,” Chainalysis stated.
The firm also found that the scammers mostly depend on the exchanges to cash out their illicit funds as 57.6 percent of these illegally obtained digital currencies were liquidated in exchanges.
Apart from the scams, the darknet markets sold over $790 million worth of cryptocurrency last year, surpassing the previous year figure of $600 million.
Last year, more than $4.3 billion in digital currencies was stolen in various crypto scams, according to the latest report by Chainalysis.
Per the New York-headquartered company, the majority of the scams were linked to Ponzi schemes, including the PlusToken and OneCoin scams.
“The vast majority of that $4.3 billion went to just two large-scale Ponzi schemes, without which crime overall would account for just 0.46% of all cryptocurrency activity,” the security firm noted.
“Scammers take advantage of the unique position cryptocurrency currently occupies in the public eye: Most people have heard of it, and many believe it has “get rich quick” potential.”
Though the amount involved in scams dropped in 2018, the number tripled last year to surpass $4.3 billion, duping millions of victims.
Apart from Ponzi schemes, fake token sales, Phishing Phishing Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Phishing is a form of cyber-attack in which fake websites, emails, and text messages are used to elicit personal data. The most common targets in this assault are passwords, private cryptocurrency keys, and credit card details.Phishers disguise themselves as reputable businesses and other types of entities. In certain instances, reputable government organizations or authorities are impersonated in order to collect this data.Because phishing relies on psychological manipulation rather than techno Read this Term, blackmailing, and fake mixers also contributed to the number.
“Over 2.4 million individual transfers were made to Ponzi schemes, a number that becomes even more incredible when you realize that the data above reflects just six individual Ponzi schemes in 2019,” the report stated.
Multi-billion dollar Ponzi schemes are the biggest culprits
The firm also pointed out that the figure is based on the reported number of the most prominent Ponzi schemes, meaning, in reality, this figure can surge further.
The average transfer to Ponzi schemes was $1,676 worth of Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term, second only to $4,188 taken in the average transfer to fake token sales, the report outlined.
“Scammers promise massive, outsized returns for those who invest in their fake companies, convincing victims to invest substantial sums in the hopes of a big payout,” Chainalysis stated.
The firm also found that the scammers mostly depend on the exchanges to cash out their illicit funds as 57.6 percent of these illegally obtained digital currencies were liquidated in exchanges.
Apart from the scams, the darknet markets sold over $790 million worth of cryptocurrency last year, surpassing the previous year figure of $600 million.