Cryptocurrency Fraud Reached $4.3 Billion in 2019

Cryptocurrency fraud is aggressively on the rise and topped over $4 billion last year, according to the security tracking company Chainalysis.

This is especially shocking to those who thought they had found an incredible investment in the cryptocurrency world, yet were swindled out of everything. As part of these cryptocurrency scams, victims are lured into investing with the hype of significant returns. Once committed, they are often shown how their accounts are quickly accruing vast wealth, which encourages them to pour even more of their money into the con. The mirage eventually disappears, as does the money, when the operation shutters without notice and the swindlers vanish will all the deposits. Victims are left with the realization they were duped as part of an elaborate hoax and powerless to recover their money.

Chainalysis recently produced an industry report highlighting the scope of the problem. The organization specializes in helping businesses and governments understand illegal cryptocurrency transactions. The data showcases the rapid rise in 2019 of big Ponzi scams that represented the bulk of the losses. The top six of the large-scale scams were collectively responsible for about 90% of the fraud. It proves when cybercriminals find the right lure in the cryptocurrency community, such as a Ponzi style scam, the momentum…