$1 billion lost in crypto scams in the first quarter of the year
The figure is still substantially less than what is lost through fiat scams
According to research conducted by blockchain analytics firm CipherTrace, around $1.2 billion was lost due to scams in the cryptocurrency ecosystem during the first quarter of the year. However, while the number is certainly astronomical, it is only a fraction of what is being lost to fiat-based scams, despite what should be a higher level of awareness regarding potential fraudulent activity. Some could argue that the crypto space is much more adept at identifying and avoiding scams than are other consumers.
The figures posted by CipherTrace include losses from two major scandals during the quarter. One was the $195 million from QuadrigaCX’s inability to locate lost crypto and the other was the $851 million reportedly lost by Bitfinex. Take both of those out, and all that is left is a little more than $400,000 in crypto-related losses.
CipherTrace tried to make the issue seem more dire than it actually is, reporting, “Cybercriminals also developed ingenious new techniques to drain millions more from user accounts and wallets. These thefts only represent the losses that are visible. CipherTrace estimates the true number of crypto asset losses was much higher.”
A simple logical conclusion would be that some companies need to hype certain figures in order to attract new business. That’s a scam that has been seen for centuries.
According to a report just released last month by Truecaller, Americans lost around $10.5 billion (with a b) in phone scams last year. That amounts to around $850 million each month – the entire amount reported by CipherTrace for the quarter. That is an increase of 70% over the figure from 2017, which seems to indicate that the general population isn’t becoming smarter when it comes to identifying fiat scams.