Last year, while bitcoin prices were booming so was crypto-related fraud.
In the U.S. alone 82,135 crimes involving cryptocurrencies such as bitcoin, ethereum, and other digital currencies got reported.
That’s up more than 24,000% from the 340 reported in 2016, according to new research from crypto education platform Crypto Head.
According to Crypto Head typical frauds include the following:
- Scam Initial Coin Offering. “Scammers will often lure investors with an ICO for a completely fabricated cryptocurrency,” the report states.
- Crypto Pump and Dump Schemes. These bear an amazing similarity to boiler room operations involving stocks. That’s where the price of the coin is driven higher by a few investors who then sell their coins at an elevated price leaving the suckers with worthless assets.
- Crypto Theft. People hacking your account and stealing your bitcoin or other cryptocurrencies have been around for most oft he history of crypto currencies.