Crypto Scams Five Times as Costly as Other Cybercrimes

By Marcus David

Director of Professional Services

Crypto scams are a serious threat to anyone who invests or trades in cryptocurrencies. According to a recent study by Surfshark, a cybersecurity company, crypto scams cost their victims about five times as much money as losses from other cybercrimes. The study analyzed data from the Federal Bureau of Investigation (FBI) and found that the average loss from a crypto scam was $86,000, compared to $16,000 from a non-crypto related internet crime.

Why are crypto scams so costly? One reason is the irreversible nature of crypto transactions. Unlike credit cards or bank transfers, crypto transactions cannot be easily reversed or refunded once they are confirmed on the blockchain. This means that scammers can quickly disappear with their victims’ funds without leaving any trace. Another reason is the lack of regulation and consumer protection in the crypto space. Many crypto platforms and services are not licensed or regulated by any authority, which makes it harder for victims to seek legal recourse or compensation.

What are some common types of crypto scams? The FBI’s Internet Crime Complaint Center (IC3) reported some examples of crypto scams that were prevalent in 2022, such as:

  1. Liquidity Mining: Victims are enticed to link their crypto wallet to a fraudulent liquidity mining application. Liquidity mining is a process where users provide liquidity to a decentralized exchange or protocol and earn rewards in return. Scammers then wipe out the victims’ funds without notification or permission from the victim.
  2. Hacked Social Media: Scammers use hacked social media accounts to perpetrate a fraudulent investment opportunity using crypto, targeting existing friends of the hacked user. They may claim to have access to a secret or exclusive crypto project or platform that promises high returns.
  3. Celebrity Impersonation: Scammers impersonate a well-known celebrity or social figure and feign a friendship with the targeted victim. They may then offer to teach them how to invest in crypto or invite them to join their investment scheme.
  4. Real Estate Professionals: Scammers contact a real estate agent, usually offering to buy a very expensive property for cash or crypto. Once engaged, they show their control of fictitious accounts with purported value of millions of dollars to entice them to join their investment scheme.

How can you avoid falling victim to crypto scams? Here are some tips to protect yourself and your funds:

  • Do your own research before investing in any crypto project or platform. Check the legitimacy and reputation of the project, team, website, social media, and reviews. Be wary of unrealistic or guaranteed returns, pressure tactics, or limited-time offers.
  • Use reputable and secure crypto platforms and services. Look for platforms that have proper licenses, regulations, security measures

The bottom line is that you need to be careful and protect yourself from these frauds. One way to do that is to use MyChargeBack, a service that helps you recover your money from crypto scams. MyChargeBack  has a team of experts who know how to deal with crypto scammers and get your money back. Whether you fell for a crypto mining scam, a crypto romance scam, or any other type of crypto scam, MyChargeBack can help you. Don’t let the scammers get away with your hard-earned money. Contact MyChargeBack today and start your crypto recovery process!