The crypto scam epidemic has worsened recently, costing investors billions of dollars. According to a BanklessTimes.com analysis, as of August 10, 2022, crypto scams had lost roughly $42B. That translates into a daily loss of an average of $189K a day.
“While there are many legitimate players in the cryptocurrency space, there are also many scammers looking to take advantage of unsuspecting victims,” says BanklesTimes CEO Jonathan Merry.
He added, “These incidences will continue growing as the crypto asset market becomes increasingly popular. This alarming trend results from scammers taking advantage of unwitting investors looking to make a quick buck or oblivious to the threats lurking in the space.”
Crypto scams come in all shapes and sizes, but the most common ones in 2022 are exit scams and exploits. Exit scams are when a company suddenly disappears with its investors’ money, while exploits are when hackers take advantage of security vulnerabilities to steal people’s cryptocurrency.
This year’s largest heist was the Terra Classic Bank Run, which netted scammers $40B. The Ronin and Wormhole exploits are the other significant crypto scams that have happened this year. Scammers made away with crypto worth $625K and $326K from the projects.
Other common crypto scams include phishing attacks, Ponzi schemes, and fake crypto exchanges. Phishing attacks are where scammers try to steal people’s passwords and personal information by sending them fake emails or texts.