Crypto Scams now the second largest in the world

[Lucius]

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.

This problem has nothing to do with Bitcoin, but with the fact that every kid today wants to have their own token or coin - which is easier to do than many other things in life. This whole altcoins industry is very problematic and no matter what anyone thinks when it comes to cryptocurrencies, much stricter criteria should be set when approving such projects in the sense that the process of listing such tokens on crypto exchanges should be much stricter than is the case now.

Of course, scam always requires the participation of the other side - and the world is full of millions of naive people who obviously have the money to invest in every crazy promise. The question is, should we protect these people from themselves in such a way that we do not allow such scams to be presented to them at all - or should we pretend that nothing is happening?

Before you answer that question, remember that the biggest collateral victim of all this general mess is Bitcoin - because the average investor doesn't make a difference between shitcoinx and Bitcoin, when he loses money, it's all the same to him.

[Sterbens]

If you already know that there will be an ideal nest for scammers who take advantage to scam people with trash projects. What's more, most of it comes from shitcoins. It is undeniable, therefore to avoid fraudulent acts conducting large-scale research and reviewing all background projects should be carried out with extreme care. But if you are not qualified to do research, then don't worry, Bitcoin is the only safest option not to fall into fraudulent actions in cryptocurrency investment.

[Renampun]

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

I am also one of the victims of rug-pull and it happened when I buy the shitcoins which popping up on pancakeswap...

Now I see that new shitcoins have rarely appeared on the DEX platform like pancakeswap, maybe because many have given up on the tricks of the scammers. everyone also agrees that only bitcoin has so far never been a rug-pull or scam, this proves that only bitcoin is truly the best and most trusted cryptocurrency.

[taufik123]

If you already know that there will be an ideal nest for scammers who take advantage to scam people with trash projects. What's more, most of it comes from shitcoins. It is undeniable, therefore to avoid fraudulent acts conducting large-scale research and reviewing all background projects should be carried out with extreme care. But if you are not qualified to do research, then don't worry, Bitcoin is the only safest option not to fall into fraudulent actions in cryptocurrency investment.

shitcoin is becoming a new method that scammers use to deceive investors. The past few months have indeed been very popular because of the tremendous rise of DOGE and SHIBA, finally many similar shitcoins have appeared, but the shitcoins created by scammers will eventually Rugpull.
Doing large-scale research or research in detail is very necessary so that we know what projects we are following for investment. But some newbies or people who have just entered as investors, don't do detailed research, they just follow other people's words and the hype that was going on at that time.
the safe choice is not just bitcoin, but the top 10 on the CMC list are pretty safe.

[wxa7115]

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.

We warn the newbies all the time about this but they simply do not listen, they seem to believe that somehow we just want to limit their profits or something, when in fact what we want to do is to protect them from losing their money to the first scammer they encounter.

I really think that if someone wants to invest in altcoins they should be free to do so, but only after they go through a long period in which they familiarize themselves with this market and all its dangers, that way we could avoid a great deal of the most common scams and if eventually those people still decide to invest in the altcoin market at least they would do so in some decent altcoins and not on the shitcoins newbies seem to love.

[Ultegra134]

Scams always existed, especially since the dawn of the internet, they became a common occurrence. Cryptocurrencies are ideal for scamming people, since the transactions are completely anonymous, while the chances of tracing back the scammer or his transactions are almost zero. Telegram and Discord groups are filled with individuals, whose whole purpose is to scam people by tricking them into phising websites, or paying stupid fees to withdraw money they supposedly won. I was also a victim of a scammer through Discord, impersonated a group administrator and tricked me by providing my private key on a phising website, luckily, despite my sleepiness, I realized it at the very last minute and saved my money.

[Oilacris]

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.

Rugpulls is the most common money making of those developers or creators of those projects around thats why as an investor then it is really just a normal thing that you should really be mindful and be

wise towards your investment decisions because you would definitely be caught likely unto these kind of projects.Dont let or make yourself get dragged of with the hype but i couldn't blame out people

to be deceived or be hooked up just because the possible returns could really be that big or enormous which it is something that it is  really hard to resist on.

[DdmrDdmr]

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. <…>

This is the reference report:
https://bbbfoundation.images.worldnow.com/library/259c7333-0fb3-4bc0-a059-4b116594c473.pdf

The second position to cryptocurrency is given by their BBB Risk Index rating (see table 1 on page 12 of their report), and it’s calculus is described on page 9 as follows:

The formula for calculating the BBB Risk Index for a given scam in a given population is:
 Exposure * Susceptibility * (Median Loss / Overall Median Loss) x 1,000

Exposure is a measure of the prevalence of a scam type, calculated as the percentage of a particular scam type as part of the total scams reported.

Susceptibility is a measure of the likelihood of losing money when exposed to a scam type,  calculated as the percentage of all reports that reported a monetary loss.

Monetory Loss is calculated as the median dollar amount of losses reported for a particularcscam type, excluding reports where no loss occurred

Monetory Loss is a core factor in placing crypto as the second on their list, since the median dollar loss reported is of 1200$ (being the global median of 169$).

It’s quite a lengthy report, whose data is originated in their online BBB Scam Tracker site, and seemingly based on 46K reports made during 2021. It may be worth a quick read for those interested in seeing some breakdowns on this data.

[Issa56]

That's why you have to be very careful, bitcon scam will continue to grow, as long as Bitcoin is growing rapidly and lot's of new coins are entering the market, the more new coins are entering the market then the more crypto scam will be increasing, so we just have to avoid investing in shit coins because most shitcoins always rug pull and always make sure you do your research first before investing in any new coin.

[BIT-BENDER]

Crypto-currency seems to be an illness not wanting to go, although since I have joined I haven't experienced such and o think there are people out there too.
It simplest for of protecting yourself in crypto-currency can go a long way, crypto-currency scam and scams generally can't go away, we have no control and manage it.

You can do that by
+ Don't be greedy
+DYOR.
+ Be very discreet with all your informations.
+ To go on unknown site or groups.
+  Follow legit links,  and so much more.

[verita1]

According to what Rug Pulls refers to, it is a type of scam that we have seen frequently.
Although there are ways to avoid falling into scam projects, there are always some that harm the crypto ecosystem and the creators get away with it.

By running off with investors' money that's where distrust in crypto lies at a very high level.

It helps a little when the businesses that promote the projects do an exhaustive review of them and show them to the public for the sale of their tokens. In this way we can take it for a reliable project. Also a project that is listed on a recognized exchange is a sign of being a legitimate project, in addition to the development itself.

[ultrloa]

That's why you have to be very careful, bitcon scam will continue to grow, as long as Bitcoin is growing rapidly and lot's of new coins are entering the market, the more new coins are entering the market then the more crypto scam will be increasing, so we just have to avoid investing in shit coins because most shitcoins always rug pull and always make sure you do your research first before investing in any new coin.

This industry is growing so expect the huge amount of scam attempt will come over on it this is why we need to have proper education about those attempts so that we can safely avoid such thing and participate only with good projects around. For newbies they should not believe people tell them to invest because they can earn huge a proper researching and profiling is good since important for them to know if the project has solid tracks to avoid getting scam nor get FOMO.

[Oceat]

That's why you have to be very careful, bitcon scam will continue to grow, as long as Bitcoin is growing rapidly and lot's of new coins are entering the market, the more new coins are entering the market then the more crypto scam will be increasing, so we just have to avoid investing in shit coins because most shitcoins always rug pull and always make sure you do your research first before investing in any new coin.

This industry is growing so expect the huge amount of scam attempt will come over on it this is why we need to have proper education about those attempts so that we can safely avoid such thing and participate only with good projects around. For newbies they should not believe people tell them to invest because they can earn huge a proper researching and profiling is good since important for them to know if the project has solid tracks to avoid getting scam nor get FOMO.

It's not just Bitcoin has a lot of scams I think these new projects revolving around such as NFTs which is being hyped and considering who's who someone should know what are the fake projects that would resulted in a rug pull.

Ever since the other altcoins ever made such as the hyped projects like ICO before the scams are growing each day. I guess newbies or not everyone could be a victim with these scammers.

[TravelMug]

I think it's a double edge standard, crypto is slowly sipping into every house hold around the world so obviously criminals are going to target them, whether project rug pulls or other scams that involves crypto. And maybe this data is what governments really wanting to regulate crypto, and for sure their main reason is to protect the consumers from this scammers plowing around the crypto ecosystem.

[The Cryptovator]

To be honest almost 99.9% of projects are Rug Pull. They come to the markets to pull money. None of them intend to keep a role in the cryptocurrency ecosystem. And we can't prevent them sadly in a decentralized world. This is something that becomes like gambling because investors sometimes could gain some profits as well. That's the reason how scammers attract investors. If you investigate deeply, you will find a single owner running multiple Rug Pull projects. Because they know very well how to pull money from investors' pockets. That's the reason I always prefer to avoid investing in a brand new project.

[Ultegra134]

To be honest almost 99.9% of projects are Rug Pull. They come to the markets to pull money. None of them intend to keep a role in the cryptocurrency ecosystem. And we can't prevent them sadly in a decentralized world. This is something that becomes like gambling because investors sometimes could gain some profits as well. That's the reason how scammers attract investors. If you investigate deeply, you will find a single owner running multiple Rug Pull projects. Because they know very well how to pull money from investors' pockets. That's the reason I always prefer to avoid investing in a brand new project.

That's true, a large amount of projects have a sole purpose of scamming people. Unfortunately, some of such shitcoins are being shown even on CoinmarketCap, as the biggest gainers (often over 200% increase in their value), 99.9% of which are pure scams, coins with zero liquidity that can't even be sold.

[fuguebtc]

This news comes as no surprise.
Crypto is emerging as a phenomenon in the financial world, where every listener can x2, x4 even x1000 properties. People rush into the market in a frenzy with the desire to get rich quick without having to learn or practice any skills. Scammers didn't pass up this opportunity to hit people's greed, they create shitcoins with the promise of investor quick wealth.

Its the shitcoins that are ruining the reputation of the market and bitcoin.

[davis196]

The people,who buy shitcoins and NFTs get what they deserve....nothing.
When you buy a bunch of crap with the expectation of this bunch of crap to become 10000% more valuable after a while,you get what you deserve.I can't feel sorry for the people,who are buying shitcoins.
Most of them know what they are buying,but they get into the ponzi scheme with the expectation,that another fool will appear and buy the same crap at a higher price.
The nastier scams are those,in which the people are being deceived for real.Like the call center scams located in India and Bangladesh,where the scammers pretend to be customer support for big corporations,so they get access to the bank accounts of old people in the USA.

[TheUltraElite]

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.  

Regulation will put a check on such projects true, but frauds will always exist outside the market and these underground dealings will become more common. It does what is says though, as long as people are careful to avoid the shady one. But it will take time and while it happens, we can work in educating newbies and reminding them the values of being humble and content while keeping ambitions of getting rich over time. Teach them how scams work and how they fool newbies.

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.

Scams exist because people exist. You can not have a world devoid of scammers and not everything is in your hands to control. How and where people put their money, is not your concern, unless it is a family member. So you have to discuss with them and explain the nuances of crypto.

[noorman0]

To be honest almost 99.9% of projects are Rug Pull. They come to the markets to pull money.

I somewhat disagree with this. Several conditions must be met in order to be called a "project" and must involve the interests of many people. What rugpull scammers do is not actually build a project, just wrap their personal mission in a "project" as closely as possible and coupled with a lot of greedy newcomers trusting fast return investments.

But it can be said that scammers and greedy people will always be a role-couple in every "mainstream" in this field,  the scam case will still exsist.