Cryptocurrency scams are among the biggest issues in the crypto space. However, many people still fall prey to crypto scams, more so in developing countries. Recent news covered one scammer in Nigeria who had managed to steal multiple cryptocurrencies by duping unaware Bitcoin owners. A recent study by Chainalysis revealed that India fell prey to crypto scams the most number of times. Chainalysis also named the 5 most visited scam websites by Indians. These are:
However, it is not as bad news as it may seem. In 2020, the numbers were much worse. In 2021, Indians visited scam crypto websites 4.6 million times. In 2020, the number stood at 9.6 million. The number has reduced by almost half, but it nonetheless remains a huge problem in the crypto community.
Scams and frauds usually target crypto owners who do not have much awareness about the nature of scams. These people can be young investors who got into the market due to peer pressure or older people who are not competent with modern tech. In both cases, victims end up losing significant amounts of money. Such incidences also give governments a reason to lash back at the growth of the crypto ecosystem. To counter this problem, the only way forward is through educating crypto owners about scams and frauds. Many investors still lack the basic knowledge of cryptocurrency frauds. If not educated, they will continue to fall prey to such occurrences.