Crypto scam losses doubled in 2023 compared to last year
According to the data analyzed by the Atlas VPN team, blockchain scam losses reached $610 million through the first three quarters of 2023.
Scammers have become more sophisticated, and many crypto investors still lack understanding about securely storing and transferring digital assets.
According to the data analyzed by the Atlas VPN team, blockchain scam losses reached $610 million through the first three quarters of 2023. Throughout the whole of 2022, scammers got just half the amount of $300 million from blockchain projects.
Crypto scam activity in 2023 started slowly, with just $9 million stolen across 9 scams in the first quarter. It was just a small fraction of the $51 million stolen through 20 crypto scams in the first quarter of 2022.
In the second quarter of 2023, scammers made off with $239 million in losses across 28 scams. That is three times as much as the $80 million stolen in Q2 2022. The third quarter of 2023 recorded staggering losses of $360 million, eclipsing total losses for all of 2022.
Cybersecurity writer at Atlas VPN, Vilius Kardelis, shares his thoughts on crypto scams: “Lack of consumer confidence and security around crypto remains a major roadblock to wider participation. Lawmakers need to take responsibility to better prevent frauds like elaborate fake investment schemes. More consumer education is equally essential so potential cryptocurrency buyers or traders understand where threats exist.”
Top scams of the year
Many of the biggest crypto scams in 2023 involved fake investment programs that promised people big returns.
The JPEX scam stole over $190 million of investors’ money. The alleged fraud surrounding the Hong Kong cryptocurrency exchange platform has erupted as one of the largest crypto scams worldwide in 2023.
South Korean company, “Blockchain for Dog Nose Wrinkles” scammed people out of $127 million. The business marketed a blockchain app to identify dogs through their nasal folds, promising up to 150% returns in 100 days, however it was a typical Ponzi scheme.
Legal authorities in India have successfully busted a $120 million cryptocurrency Ponzi scheme The Solar Techno Alliance. Fraudulent investment scheme called CoinDeal cost $45 million to investors all around the world. Founders of Fintoch, another Ponzi project, were able to steal over $31 million of user funds.
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