Crypto Scams now the second largest in the world

[romero121]

According to the report from Better Business Bureau scams involving cryptocurrency are the most prominent and riskier one after the online purchase scams which accounts 37% of world's total scams. Earlier cryptocurrency was placed at the seventh position on this list, and during the year 2020 it has moved to the second position. Only 2% of the scams around the world account to cryptocurrency scams, but the amount involved seems to be high. On an average it is found to be around $1200. With cryptocurrency Scams/frauds Rug Pulls are very common.

What is "Rug Pull"
This is a process of creating new cryptocurrency. A person or group create and establishes whole new cryptocurrency or token that investors can put their money into. They garner all the funds they need, and right when the token appears to be reaching a new price peak, the executives run off with all the cash, leaving investors with bruised egos and empty pockets.

Crypto Scams now the second Deadliest in the world :BBB

[1714864105]

1714864105

[1714864105]

1714864105

[1714864105]

1714864105

[1714864105]

1714864105

[Uang_kartal]

I've read the link you shared, it turns out that quite a lot of people have experienced fraud under the pretext of rug pulls, I think I'm the only one who has experienced frozen/withered assets before they developed and there isn't even any forwarding from what the developer has reported. Indeed, it's an investment risk. In cryptocurrencies, I admit, it's high enough that it's said to be deadly, yes indeed, that much money belongs to users who believe they are just taken away, scammers have a lot of tricks and I think it's too much for people to measure themselves, although it's not small for those who don't give up

[Jawhead999]

This is the reason why you need to avoid shitcoins and pick only Bitcoin if you want to start to invest on crypto space. After 13 years created, Bitcoin never ever scam anyone until now. If there's an article discuss about Bitcoin scams, pretty sure it's either exchange, investment company, recoverable funds etc are the scammer, not Bitcoin.

[Anonylz]

Crypto scams are increasing and people are losing money as a result, too many new projects popping up pretending to provide certain service in blockchain only to end up rug pull on the investors.

This is the reason why you need to avoid shitcoins and pick only Bitcoin if you want to start to invest on crypto space. After 13 years created, Bitcoin never ever scam anyone until now. If there's an article discuss about Bitcoin scams, pretty sure it's either exchange, investment company, recoverable funds etc are the scammer, not Bitcoin.

Very true, except for exchange hacks, social media accounts hacks demanding btc from people, wallet hacks and other similar cases, it is not possible to get scam just by investing on btc through the right source. This is the reason it is the most trusted and reliable cryptocurrency in the world.

[mk4]

What do we really expect from having an open decentralized industry though? Of course there will be a crap ton of scams. But we really can't sort of "police" this, people in general just need to be a lot smarter or just a lot less stupid when it comes to investing their money.

[smartaction]

People are thieves.  This is not to say that you and I are thieves. People are terrorists.  This is not to say that you and I are terrorists. Yes there are more scams in cryptocurrency but this is not the whole crypto industry scam. If you are not careful, the scammer will make you his victim. You be careful.  And refrain from buying shitcoins. Then the scammer can't hurt you

[Wexnident]

Well, I don't really find it that hard to believe. It's actually something natural considering the fact that there's a lot of new stuff that's being introduced, as well as compared to the past, dissemination of information is way easier now so a lot more people are informed and are attracted to investing, which also includes a lot of young people that have a bit of money and want to try their hand on investing stuff. Most of it is, just like what mk4 said, is about the ignorance and stupidity (mostly ignorance) of people when investing. Just like how it is easy to find info on something to invest, it also escapes their mind to actually do proper research at times.

[DapanasFruit]

I have been expecting that soon crypto-based scams and frauds can top them all...and it is because cryptocurrency is a growing industry and there will always be people who can be enticed to be victims of any schemes whose main intention is to steal their money from their digital wallets...with the most effective strategy of appealing to human greed. Sadly, there is not much we can do on this problem individually though we can fortify ourselves and maybe others by educating what can be possible scams and frauds. Right now, anybody, anywhere can be able to start a project that can be accepting token sale or ICO as in the past with the promise that the coins or tokens will be pumping at the right time...only for the victims to realize that the people behind the project have already been gone into vacation somewhere with their money gone for good.

[Uang_kartal]

I have been expecting that soon crypto-based scams and frauds can top them all...and it is because cryptocurrency is a growing industry and there will always be people who can be enticed to be victims of any schemes whose main intention is to steal their money from their digital wallets...with the most effective strategy of appealing to human greed. Sadly, there is not much we can do on this problem individually though we can fortify ourselves and maybe others by educating what can be possible scams and frauds. Right now, anybody, anywhere can be able to start a project that can be accepting token sale or ICO as in the past with the promise that the coins or tokens will be pumping at the right time...only for the victims to realize that the people behind the project have already been gone into vacation somewhere with their money gone for good.

I agree with you, indeed we know any company that makes it look cute, with a high ROI or Apy that doesn't make sense for an interest from the rewards given, but when talking about greed, it's difficult bro because it's not their own nominal value. see and deposit, only see the results obtained without seeing a reasonable analysis and this darkens the eyes of investors, even though it doesn't necessarily work as described. especially shitcoin and some of the schemes that friends mentioned above I think need to be re-evaluated by I personally.

[Wiwo]

This is the reason why you need to avoid shitcoins and pick only Bitcoin if you want to start to invest on crypto space. After 13 years created, Bitcoin never ever scam anyone until now. If there's an article discuss about Bitcoin scams, pretty sure it's either exchange, investment company, recoverable funds, etc are the scammer, not Bitcoin.

I have not heard of a Bitcoin scam all my days in cryptocurrency, yes there may be scams in Bitcoin services such as exchange scams as you mentioned. But to see a Bitcoin internal scam is impossible because Bitcoin is decentralized and over the years Bitcoin has built a good reputation and proven anti-scam security test. But same can not be said of altcoin since centralization has given room for third-party involvement which give scammers the leverage to manipulate the system and carry out scams most especially hacking into project/exchange hot wallets and making away with huge funds. But am sure cryptocurrency scam is going to reduce to their nearest minimum in the future scammers are become aware that there is never a place to hide in blockchain and every transaction will be traced in the future, so the idea of scammers seeing crypto as a safe haven for their illegal activities is a dumb shit and soon there will be close in on, no place to hide for scammers.

[jossiel]

Not new and became a common thing, especially to the new projects.

When a new investor gets into the new projects like those NFTs and other new common investments in this decentralized market, they're the ones that are likely to get scammed and experience rug pull.

Unfortunately, even there are too many of those folks that have experienced being rug pulled and scammed. That isn't enough for them to make it because they still invest nonstop on those likely scam projects.

[pooya87]

I'm not surprised, in fact I've been saying that ever since ICO creation became a thing where anybody could create a token out of thin air and with virtually no cost and then sell it to idiots on the internet, the scams grew a lot more. The token creation platforms such as ethereum were created exactly for this reason, they eased the way to scam people ergo the number of scams grew a lot faster.

What do we really expect from having an open decentralized industry though?

I have to disagree here because it is not only because the market is decentralized (that is one of the smallest reasons). It is mainly because it is hyped up and as I said above, it is super easy to create vaporware and sell it to people who emphatically buy it!
In other words if the hype stops and people started wising up, despite the market still being decentralized, the number of scams shrinks.
We already saw how ICO scams died, but they revived it by renaming it multiple time (ICO, IDO, IBO, IEO, ITO, STO, DeFi, NFT).

[KaliLinux]

I'm not surprised, in fact I've been saying that ever since ICO creation became a thing where anybody could create a token out of thin air and with virtually no cost and then sell it to idiots on the internet, the scams grew a lot more. The token creation platforms such as ethereum were created exactly for this reason, they eased the way to scam people ergo the number of scams grew a lot faster.

What do we really expect from having an open decentralized industry though?

I have to disagree here because it is not only because the market is decentralized (that is one of the smallest reasons). It is mainly because it is hyped up and as I said above, it is super easy to create vaporware and sell it to people who emphatically buy it!
In other words if the hype stops and people started wising up, despite the market still being decentralized, the number of scams shrinks.
We already saw how ICO scams died, but they revived it by renaming it multiple time (ICO, IDO, IBO, IEO, ITO, STO, DeFi, NFT).

You said it all and I definitely agree with you, this is why I personally have been critical of how easy just for anyone to create their own token just out of no were just cos they know how to string some numbers together and because Crypto over the recent years has been seen as an avenue to get rich so, the "idiots" you mentioned above will continue to venture into investing in every new crypto project they see out.

[lovesmayfamilis]

It is not surprising to hear such news. With the huge amount of advertising on social networks and the current financial crisis, people are more and more seeking to invest their savings in assets that will secure them. And then scammers appear who colorfully promise big profits to people who are already in the background of the collapse, ready to find at least some kind of insurance. In addition to the fact that people fall into fraudulent schemes without a full understanding of all the pros and cons of cryptocurrencies, stressful situations also encourage people to believe scammers.
Therefore, they always warn that in order to invest your money in any company, you need knowledge and cold and competent calculation.

[Ryker1]

Well, that was expected since day by day we have newcomers who always have curious about investments without knowing what it is as long they heard about ^[profit] That is right profit --greedy people will take always a risk even though they know that it is very vulnerable into a scam like shitcoins and other memecoins that becomes scammed. I don't know how many projects now have been raised related to crypto and perhaps 60% of them become scammed. People should stick on bitcoin nothing else, no hype, no fraud and you will be safe.

[asus09]

I'm not surprised that now crypto scams are the second largest in the world, ordinary new projects will become easy targets for everyone who wants to commit fraud, not only scammers but also rich people have a great opportunity to commit fraud, they provide great rewards to attract investors then they disappear, learn from the existing experience, even though the price of bitcoin is now falling, but I still invest in bitcoin,

[molsewid]

I'm not surprised that now crypto scams are the second largest in the world, ordinary new projects will become easy targets for everyone who wants to commit fraud, not only scammers but also rich people have a great opportunity to commit fraud, they provide great rewards to attract investors then they disappear, learn from the existing experience, even though the price of bitcoin is now falling, but I still invest in bitcoin,

Yes me either, I mean I am also once a victim of a rug pull project and for that's disgusting but at the same time it teaches me a great lesson that I can use to my future day plan in investing in crypto. Actually, I have heard a lot of people I know that was also a victim of scam projects of crypto and as much as I wanted to help them but a lost money in rug pull project cannot be retrieve. So yeah, let's be very careful on what projects we will going to invest, investing in new projects are totally risky.

[Hypnosis00]

Well, that was expected since day by day we have newcomers who always have curious about investments without knowing what it is as long they heard about ^[profit] That is right profit --greedy people will take always a risk even though they know that it is very vulnerable into a scam like shitcoins and other memecoins that becomes scammed. I don't know how many projects now have been raised related to crypto and perhaps 60% of them become scammed. People should stick on bitcoin nothing else, no hype, no fraud and you will be safe.

They are not just greedy, they are also impatient. And every time there is a new project that offers high returns x100, x1000, without a doubt, they put money in there. They don't realize it until they suffer losses.

Now the crypto investment is getting bigger, more chances that these scammers will get a victim. So many individuals that are here know nothing, they simply just do buying without taking the precautions. They'll absolutely be thinking about easy money in crypto which they think is not necessary. That is why it was not going wonder why crypto is the 2nd largest scam in the world, that can possibly be the top if these newbies won't change their approach to the market.

[Bitstar_coin]

According to the report from Better Business Bureau scams involving cryptocurrency are the most prominent and riskier one after the online purchase scams which accounts 37% of world's total scams. Earlier cryptocurrency was placed at the seventh position on this list, and during the year 2020 it has moved to the second position. Only 2% of the scams around the world account to cryptocurrency scams, but the amount involved seems to be high. On an average it is found to be around $1200. With cryptocurrency Scams/frauds Rug Pulls are very common.

Reason why government regulation is very important, imagine how the number has grown from 7th position to 2nd position within a short period, the whole cryptocurrency existence is just a decade plus and already the rate of scam is at the 2nd position, what will happen in few years ahead? if not for anything, regulations can reduce the number of scams and rug pull a lot. Scammers are taking advantage of the decentralize space to carry out their terrible act.  Many of these new projects are created to deceive investors, rug pull is a common practice among new project. If nothing is done, the scam rate will keep increasing.

[kryptqnick]

I don't get it how crypto scams are second largest and at the same time account for 2%. From the article, I don't understand how exactly it's calculated. Is it because of the median sum of lost money? Is it by the large number of such scams? I think this requires more data to be analyzed, and I heavily suspect that the metric by which crypto scams are second largest (and, by the way, the article's name calls them 'second deadliest' for some reason, which IMO could only be justified if it accounts for people literally being killed for their money) is actually quite misleading and overall irrelevant, whereas the point about 2% should receive more attention.