Crypto Scammers’ Income Drops By 30% Due To COVID-19

The crypto scammers’ income dropped by more than 30 percent during the Coronavirus pandemic crisis according to the blockchain company Chainalysis data, published a day ago. The data indicates the average value of transactions received by the wallets of scammers dropping during March. Let’s read further in the crypto scam news.

The data published stated that the attempts of the scammers levering the COVID-19 fears to dupe the victims into downloading malicious apps or donating money to fake charities, the virus only seems to have boosted the sharp decline in the crypto scammers’ revenues.

The March crypto crash seems to have impacted the incomes of the scammers.  Reports show that the total daily value of the transfers destined to scam the wallets crashed by 61% over two weeks after sitting at $10,000 as of March 13 to March 31 while the value in the scams has rebounded from roughly $5,000.

The data suggests that the concerns around COVID-19 scams have been overblown and Chainalysis noted that most of the scammed crypto users have been taken in the investment of Ponzi schemes which represented more than 95% of the combined sums that were taken in by the crypto scams 2019.

The company identified resurgence in email scams with the coronavirus pandemic providing a new narrative that scammers can in a bid to trick their victims into providing access to their wallets or to send cryptocurrencies under false pretences. Chainalaysis noted an email scam where the scammers impersonated the Centers for Disease Control and prevention to request more donations to the research into Coronavirus treatments.

The company also noted that there was an emergence of malicious blackmail schemes capitalization on the virus. Unlike typical blackmail schemes where fraudsters claim to have compromising info that they will give out to friends or family if they are not compensated, the scams have claimed to be sent from the individuals confirmed to have Coronavirus.

As per the other crypto news, The data from the Australian Competition and Consumer Commission (ACCC) shows that the use of crypto scams increased tremendously over the year. The losses reached a sum of $6.1 million versus the $2.1 million reported in 2017. The use of cryptocurrencies and other methods increased the need of anti-scam measures by the financial institutions.