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Increase in cryptocurrency fraud by almost 200%

Increase in cryptocurrency fraud by almost 200%

created Natalia Bojko2 May 2019

The scale of fraud and all kinds of fraud on the digital asset market is growing fast. This confirms the released by the Australian Commission of Competition and Consumers (ACCC) a report related mainly to cryptocurrencies. According to the ACCC in 2018, Australians have been deceived for over 4,3 billion USD.

Be sure to read: Scamwatch: Australians deceived at almost 39 million USD

Almost 700 scams

Any illegal activity related to financial fraud on the cryptocurrency market has been recorded very early, so it is not a new phenomenon. However, referring to the number of matchmakers per year, it increased by 190%. This translates into almost 700 cases of companies that swindled money, whether for the purpose of exchanging them for digital assets or directly trading them on the market. False platforms used for this were tempting with attractive terms of trade (eg lack of commissions) or simplified formalities when setting up an account (no need to create and authenticate), they offered to buy any type of cryptocurrency.

Large-scale scams

Fraud also applies to large-scale payments. They were made by trusted intermediaries. A lot of them went mainly through well-known and popular websites that we use every day eg Western Union. The smaller part was scams connected with investments based on digital assets, which promised high rates of return, where cryptocurrencies were their own contribution.

A large part of the money, in addition to popular transfers, were also gift cards. Losses associated with this form of "investment" amounted to over 3 million dollars.

The victims are mostly men

As indicated Targeting Scams (annual report of the Australian Competition and Consumer Commission), more than half of all victims were young men in the 25-35 age group.

Despite the alarms and numerous warnings, the number of fraudsters and people who can be persuaded of suspicious investments does not decrease at all. Fraudsters, through a series of new security and banking systems that are responsible for catching SCAMs, will look for more and more sophisticated payment methods. I am talking mainly about the aforementioned gift cards, various types of vouchers, or "shares" by purchasing, for example, packages for crypto-mining in pseudo-mines, which in reality do not exist.


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About the Author
Natalia Bojko
Graduate of the Faculty of Economics and Finance, University of Białystok. He has been actively trading on the currency and stock markets since 2016. It assumes that the simplest analyzes bring the best results. Supporter of swing trading. When selecting companies for the portfolio, he is guided by the idea of ​​investing in value. Since 2019, he has held the title of financial analyst. Currently, he is the co-CEO & Founder in the Czech proptrading company SpiceProp. Co-creator of the Podlasie Stock Exchange Academy project (XNUMXrd and XNUMXth edition).