[2018-03-02] $9 Million a Day Is Lost in Cryptocurrency Scams

[nickbelski]

In the time it takes you to read this sentence, $850 will have been lost to cryptocurrency scams. In the time it takes to complete this article, that figure will have risen to $17,000. Phishing; fraud; theft; hacking; it’s all rife. In the first two months of 2018, there were 22 separate scams involving thefts of $400,000 or more. Put it all together and that equates to an average of $9.1 million a day. Oh, and that doesn’t include 2018’s outliers – Coincheck, Bitconnect, and Bitgrail. Otherwise, the total would actually stand at $23 million a day.

There’s a Scammer Born Every Minute

Welcome to 2018, where $1.36 billion has already been stolen by cryptocurrency scammers, and we’re only 59 days into the year. Even when the big three of Coincheck, Bitconnect, and Bitgrail are removed from the equation, that figure stands at a hefty $542 million. If that trend were to continue for the remainder of the year, hackers, scammers, and fraudsters would pocket $3.25 billion, which is the GDP of a small African nation. That figure sounds damning, and is one that cryptocurrency exponents will be swift to seize upon.

A little context then. One of the best things about the cryptocurrency space is its transparency. This is a principle which doesn’t just apply to blockchains – it applies to the entire ecosystem. Publications such as news.Bitcoin.com, together with many more, while happy to report positive developments, have no qualms about disclosing the negative side of cryptocurrency. The good, the bad, and the ugly are all publicized, firstly because it’s relevant, and secondly because this knowledge helps readers defend themselves against similar scams.

It would be great to see the number of cryptocurrency thefts drop to $4 million a day, then $1 million and eventually zero, but realistically that’s not going to happen. The best that can be hoped for is a reduction in the amount lost to scammers. You don’t have to be smart to trade cryptocurrencies, but doing so will almost certainly make you smarter. The average crypto holder is more aware of security threats, both cyber and physical, and more inclined to question everything. You might one day sell your bitcoin, but you’re unlikely to ever disable your 2FA. That’s what a good grounding in the crypto trenches does.

See more: https://news.bitcoin.com/9-million-day-lost-cryptocurrency-scams/

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[Kemarit]

Those figures are really damning indeed. And this is the main argument of those governments who are anti-crypto. Remember China? they suddenly turn their backs because they wanted to protect its citizens from all scams that's been going around. However, we should enjoy and exercise our freedom to invest here. If we are going to be scam, then so be it. Let that be a lessons for all of us, and really a expensive one. But I don't think that you will make the same mistakes twice. As for the hackers and criminals, then we have to own the responsibility to really protect all our funds in a exchanges or even in your own wallet. By now everyone should be aware how to protect our selves from those thieves. If we do our part, then I'm sure that we will not be another victim here.

[Qartersa]

The scammers who are born every minute are the very reason why there are a lot of people who are against Bitcoin and all other cryptocurrencies. They stain the reputation of cryptos to people who might have been interested about it in the first place. Come to think of it, if these victims were not enticed with cryptos, how come they were swayed by these scammers to begin with?

We cannot stop evil but we can educate ourselves to not fall victims of these creatures. We have to very well assess the sites before we even think of clicking them. All those promises that are too good to be true should already put us on guard because there really is NO easy money. We always work for money unless we only resort to stealing. And oh, lucky you if you are a rich heir for that matter. But you know, until you have realized the inheritance, all rights you have are merely INCHOATE. Right? So there. I guess education is key above all these.  

[Basmic]

I wonder where such statistics came from. This article does not specify the source. Perhaps these figures are not true. I believe that a lot of people suffer from fraudsters and hackers. But we don't see statistics of how many people lose Fiat. You think hackers don't break the Bank account? As long as there is property will be people who want to steal it.

[ecnalubma]

Cryptospace is a wild west and attracts smart criminals like hackers and scammers. That is why we should not hate governments backing and regulating crypto because its the only way to minimize these sort of criminal activities in the crypto space.

[motoprose]

$9 million per day does not seem too realistic.
If that is just in cryptocurrency can one imagine how much is done in just plain currency in the fiat system in comparison?
It might be much more since a lot more people use that due to accessibility where they live and does not require a computer/phone with an internet connection to complete a transaction.

[aso118]

I wonder where such statistics came from. This article does not specify the source. Perhaps these figures are not true. I believe that a lot of people suffer from fraudsters and hackers. But we don't see statistics of how many people lose Fiat. You think hackers don't break the Bank account? As long as there is property will be people who want to steal it.

The data is not from any one source. It is compiled from publicly available information. As the article says, there have been 22 separate scams involving thefts of $400,000+ (ignoring the outliers). Once you have these figures, calculating the average loss per days is a simple matter of summing up the amounts involved and dividing by the number of days. Of course, if you compare it to fiat, then even this number will be really small.

[entrepmind23]

It would be great to see the number of cryptocurrency thefts drop to $4 million a day, then $1 million and eventually zero, but realistically that’s not going to happen. The best that can be hoped for is a reduction in the amount lost to scammers. You don’t have to be smart to trade cryptocurrencies, but doing so will almost certainly make you smarter. The average crypto holder is more aware of security threats, both cyber and physical, and more inclined to question everything. You might one day sell your bitcoin, but you’re unlikely to ever disable your 2FA. That’s what a good grounding in the crypto trenches does.

Due to cryptocurrency being a new thing, I believe most of those that are victims of being scammed are the newbies that just entered the crypto ecosystem. It is like their baptism of fire to know if they can really survive in the crypto world. Of course it is not required but there are times when you have to experience it yourself so that you will be careful next time. I have been one of those people who have been scammed when I just entered crypto because it is very easy being persuaded especially if you can see the possible amount of money you can earn by just investing into it. Sadly, one will only learn the lesson afterwards even if you already warned a newbie to not invest. This is the reason why there are scammers because there will always be new people who will be willing to risk money and do not do their own research.

[CryptoBry]

Scams are actually existing in all type of endeavors and industries but with cryptocurrency these scammers are finding the best haven they have been looking for. As of now, these scammers find cryptocurrency to be the easiest target practically because this is the new, many of the people in it can still be easily fooled and there seems to be no way for a victim to run after these scammers because of the anonymity and non-reversal of transactions.

Scammers right now are having a feast. As one of their many victims, I know that damn feeling when realizing that all of your coins or tokens had been withdrawn by somebody else without you being aware...partly because the wallet you are using is decentralized and for all intent and purposes does not mind your business.

Hopefully, as this industry will get matured, there can be many ways that we can deal with these scammers where many are born every minute...and they can really be crafty and many times ahead of the games.

[gabbie2010]

That amount is purely exaggerated although it is a well established fact that scammers are the prowl on daily basis mostly hackers who stealthily hacked into people account this mostly common with MEW users with daily growing complaints of scammers using phishing sites to obtain users detail especially private keys.

[Sir Cross]

The numbers are shocking. It has only spoked about cryptocurrency scams. There are plenty more other types of scams out there, and it can be seen that with just cryptocurrencies, many have lost huge amounts of money. As cited by the article, transparency has played a part on this. This article has shown how scams are still pretty prevalent and little is being done about it since it does not lessen by the day.

To conclude, security is very important for the cryptoholder. A disadvantage of decentralization is your inability to recover what you've lost and the possibility of getting hacked. Those who don't know how take care of their own wallet or private keys are those who are most likely to fall victim of crypto scams.

[akamit]

By knowing this damn calculation of hacks & steals, people of every position should get themselves on more safety measures.

$9 million a day is not a joke, it's a huge amount - increase your security measures - they may be coming for you.

Peoples who provide crypto related services, such as exchanges, should use cold wallets and constantly updating the security of all known vulnerabilities.

[odolvlobo]

Let's add some perspective. Here are two examples of losses due to dollar scams.

Bernie Madoff's ponzi scheme lost $65 billion.
Enron was a $63 billion company that went bankrupt due to fraudulent activities.

In short. scams involving cryptocurrencies are nothing compared to scams involving dollars.

[theCoinMaestro]

Let's add some perspective. Here are two examples of losses due to dollar scams.

Bernie Madoff's ponzi scheme lost $65 billion.
Enron was a $63 billion company that went bankrupt due to fraudulent activities.

In short. scams involving cryptocurrencies are nothing compared to scams involving dollars.

The losses through Cryptocurrency Scams may not be as big as the headline grabbers in the past "yet", but with cryptocurrency's mainstream push, Madoff's and Enron's losses may soon be dwarfed by it. Criminals have been getting smarter. People I'm afraid are getting dumber. Gen X, Gen Y, Gen Z, pathetic bunch of snowflakes really that needs a serious whack in the head to wake up to the realities of today's times.

[Grayy]

Scam are quite worrying in crypto markets. Mostly victims of scams are people who like to have unreasonable interests on their investments. though cryptos are highly volatile it is pertinent that people move along with their investments in a good reasonable pace. crypto marketing scams back the saying that: "if you don't read you rot" . Being knowledgeable in this environment is surely a key to avoiding scams.

[Tempera]

Where did you get this data?

In fact, it is really impossible to get real figures. Do scammers report to anyone? )))

[bosian]

The values are not lost, they are stolen, the article title is very misleading.

[Zitudent]

Cryptospace is a wild west and attracts smart criminals like hackers and scammers. That is why we should not hate governments backing and regulating crypto because its the only way to minimize these sort of criminal activities in the crypto space.

That is the reason I only recommend my friends to buy Bitcoin, Bitcoin Cash and ETH or Monero.

[8270thNinja]

One of the example is the private selling on ICOs, some of the scammers pretend to be someone from the Company of that ICO and lure out investors to get their money which is a big flaw on the ICO's security, just with this simple mechanism, anyone can be a victim and i heard this is one of the famous scam scheme on Telegram ICO Groups.

[hatshepsut93]

Hacks and phishing will always be a part of cryptocurrency ecosystem because all transactions are final so it's much more lucrative for thieves to target cryptocurrency users than trying to steal from someone's bank account. To prevent this, we as a community should teach newbies how to avoid those risks, and people who introduce cryptocurrencies should stress out the importance of security. But the other big problem is ICO's - majority of them are just scams and people should be really careful before throwing their money at every new project that pops up.