Crypto Criminals Are Getting More Active in 2020

Endy Callahan

Even though the crypto community is doing all possible to protect the crypto market and its participants, the number of crypto criminals that are trying to commit something illicit is growing. Scientists think that the current ecosystem is not holistic enough. If there is an AML-centric approach, the crypto market will be able to stop crypto scammers from spreading this year.

CipherTrace is one of the companies that keep track of the number of crypto crimes. Recently, the source announced that the last five months have been exceptionally productive for cybercriminals – they have managed to make a profit of 1.4 billion USD, which makes this year the most active regarding fraud, hacks, and thefts related to the crypto world.

The company states that this trend must not keep developing. Otherwise, by the end of the year, the amount will have reached 4.5 billion USD or even higher. Most criminals seem to be making profits on the crisis and post-pandemic. They find people whom they lure in a range of campaigns and fraud coming from darknet and ransomware.

More than that, thousands of scams have made profits on email campaigns. The criminals impersonated different COVID-19-related official organizations and asked for donations and payments made in cryptocurrency. Also, CipherTrace’s representatives report that ninety-eight percent of the total value of the stolen crypto belongs to misappropriation and fraud. The other two percent attribute to direct thefts and hacks.

New Methodologies That Criminals Apply

Scammers do not seem to give up. They evolve their new approaches and offer special methodologies. According to experts, it is close to impossible to foresee how criminals will act this year and what methods they will use. What scientists predict is that if no special measures are taken, then the amount of profit made by crypto criminals will have exceeded four billion USD in half a year.

The Ponzi scheme has become this year’s worst experience. The project emerged in China and spread across the crypto community raising billions of dollars. VASPs may also be included in the list. Researchers warn the public against exaggerated promises and statements. Retail investors should not believe in fantastic returns. Unfortunately, there are beginning traders who get lured into this sort of practice.

CoinFirm’s representatives say that the total of crypto assets stolen in the past four months has reached two billion ISD. Statistics show the figures and reveal the real situation. What is more important is to create a scheme that would help the participants and teach them to avoid this kind of issue in the future.

The Post-Pandemic Crisis Has Affected the Situation

The coronavirus has influenced the normal course of things and has greatly affected the entire industry. The number of people who have begun using phones and laptops daily has increased. Scammers soon realized they could benefit from this and invented new opportunities to gain profits. Criminals started to offer to join and support trust trading and binary options.

The community must restrict the spread of crypto-related fraud and scam. Many social media sources are trying to focus on the issue and find solutions. However, they face many difficulties, and coping with them seems more challenging than expected. Right now, experts admit, that blockchain does not facilitate investigations if funds are missing. They do not yet incentivize the reporting of activities that look suspicious.