Crypto Scams on Rise Again, Here’s What You Need to Know

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2024 is one of worst years so far

2024 has been a challenging year for me, to say the least, as a crypto investor who values both my hard-earned money and sanity. The surge of crypto heists and AI scams this year has made navigating the market feel like walking through a minefield.

As the market becomes increasingly optimistic, an influx of inexperienced investors will eagerly jump into various investment opportunities.

Based on a recent study by Chainalysis, there has been a substantial rise in crypto thefts this year, with the amount of stolen funds nearly doubling from $857 million to $1.58 billion by the close of July. Additionally, inflows from ransomware have risen as well, with $459.8 million being directed through the first half of 2024 compared to $449.1 million during the same period in 2023. This suggests that 2024 could be another record year for ransomware.

Crypto Scams on Rise Again, Here's What You Need to Know

As an analyst, I’ve observed a striking resurgence in hacking activity this year following a significant dip in 2023. By the close of July 2024, the total value swindled had already increased by a substantial 84.4% compared to the same period last year. Interestingly, the number of hacking incidents has only slightly risen by 2.76% YoY, but the average amount stolen per incident has skyrocketed, jumping from approximately $5.9 million per event in early 2023 to a staggering $10.6 million per event in 2024.

In recent times, centralized services have emerged as major attractions for cybercriminals, contributing significantly to financial losses. By 2024, transactions involving Bitcoin and stolen funds are projected to make up about 40% of these transfers, predominantly due to high-profile thefts such as the $305 million heist from DMM exchange. This single incident accounts for a staggering 19% of the total value stolen in this year alone.

By the year 2024, the highest amount ever paid in ransomware attacks was approximately $75 million, given to the Dark Angels group. This represents a significant surge of 96% from the peak payment in 2023 and an astounding 335% increase compared to the maximum payment in 2022.

Crypto Scams on Rise Again, Here's What You Need to Know

AI scams

More recently, the Federal Bureau of Investigation (FBI) has issued a warning about the escalating danger posed by artificial intelligence (AI)-driven fraud schemes. As per their statement, malicious actors are utilizing both commercially available and specially crafted AI systems to execute sophisticated phishing operations, taking advantage of the trust placed in individuals and organizations alike.

As a crypto investor, I’ve noticed an alarming trend of sophisticated phishing attempts that use AI to create personalized, well-written emails. These clever scams are designed to trick me into revealing sensitive information or falling for data theft. The fact that they’re grammatical and spell-checked only makes them more convincing and dangerous.

1. Chatbots and virtual assistants utilizing AI technology might disseminate false cryptocurrency tokens, manage pump-and-dump activities, or offer deceptive financial guidance. The previous year witnessed an increase in deepfake advertisement videos, a trend that persists into 2024.

Crypto Scams on Rise Again, Here's What You Need to Know

Swindlers frequently take advantage of well-known personalities’ likenesses and artificial intelligence-created videos to promote scam cryptocurrency ventures by using deepfake technology. These misleading deepfake clips entice viewers with the allure of doubling their cryptocurrency investments through QR codes.

As a researcher, I uncover that unauthorized intruders swiftly manipulate YouTube access tokens, enabling them to falsely represent various entities and alter channel appearances. This deceitful tactic leads viewers towards harmful websites propagating fraudulent cryptocurrency doubling schemes.

As a crypto investor, I’ve recently come across a troubling revelation: A Delloiette report has uncovered an alarming trend on the dark web – a flourishing industry dedicated to peddling scamming software, priced anywhere from $20 to thousands of dollars. This widespread availability of such malicious tools is eroding the effectiveness of many existing anti-fraud measures.

Crypto Scams on Rise Again, Here's What You Need to Know

Basic tips to avoid scams

  1. Do not trust big profit promises

Investing in cryptocurrencies naturally involves risks, as unscrupulous individuals frequently exploit the quest for rapid gains. These con artists lure potential victims with enticing offers of extraordinarily high yields, doubled investments, or even ‘free’ money. It is essential to approach such propositions with a critical eye and perform extensive research before making any investment decision.

  1. Check for errors in emails and messages

As a savvy crypto investor, I always keep my guard up against potential scams. You can spot them easily by noticing if the communication is riddled with spelling mistakes, grammatical errors, or inconsistencies. Legitimate entities, on the other hand, always communicate in a polished and error-free manner.

  1. Avoid transactions with unclear details

Genuine investment options openly share where your money goes and what you can reasonably expect in return. Conversely, scams tend to be vague or unclear about their operations and potential profits.

  1. Look for manipulation tactics

Fraudsters could employ intimidating strategies such as blackmail or present what seems like unbreakable agreements to ensnare people. It’s crucial to carefully review any contractual terms, and be alert for threats or attempts at manipulation. This warning extends even to private messaging with someone you haven’t met before.

  1. Question celebrity endorsements

When an endorsement appears odd or doesn’t fit, always double-check its legitimacy. Genuine endorsements are often backed by solid evidence and maintain consistency, as influencers usually exercise caution when connecting their names to certain ventures.

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2024-08-24 13:31