Cryptocurrency scams fell 77 %
A report prepared by Chainanalysis determined that hacking attempts with cryptocurrencies fell in one year
A recent report from Chainalysis revealed that cryptocurrency-related scams saw a significant decline compared to the same period last year. However, malicious actors continue to pose a threat.
According to Chainalysis’ semi-annual report, cryptocurrency scam cases have decreased by 77 % in the first half of 2023 compared to the previous year. Despite this drop, ransomware attacks have shown an increase in the amount of money stolen.
In general, cybercrime decreased compared to last year. Although cryptocurrency scams have attracted fewer funds this year, researchers warn users to remain vigilant and not let their guard down against potential scams and attacks.
The Chainalysis report highlights that revenue generated by cryptocurrency scams between January and June 2023 decreased by 77 % compared to the same period last year, from approximately $3.3 billion to just $1 billion.
This significant drop is largely attributed to the demise of two major scams: VidiLook and Chia Tai Tianquing Pharmaceutical Financial Management. Both scams followed the model of offering disproportionate returns to users investing in their cryptocurrencies, but VidiLook had a unique quirk: it rewarded users with its native VDL token in exchange for viewing digital ads, which it then claimed users could use as a guarantee to access great rewards.
The decline in revenue from scams also coincides with the recovery of Bitcoin and other major cryptocurrencies, following losses in 2022. A previous report by Chainalysis noted that the market downturn reduced interest in seemingly lucrative deals, which in turn time reduced the potential liquidity that the scams could have captured.
In addition, people now have a greater knowledge about cryptocurrencies, how they work and how they behave in the market, which makes them less likely to fall into the hands of scammers who take advantage of the lack of knowledge and the complexity of these topics, such as Chainalysis concluded in an earlier report.
K. Tovar
Source: Diariobitcoin
(Reference image source: Unsplash, in collaboration with Getty Images)
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