The decline in crypto asset values and the departure of naive crypto investors from the market have reduced the number of victims of cryptocurrency scams in 2022. Chainalysis reported that the total money generated by cryptocurrency scams year-to-date is approximately $1.6 billion, representing a 65% decrease compared to last year. This dip seems to be related to the falling values of cryptocurrencies. During bull markets, investors are more susceptible to fraud when they see more chances of investing in the cryptocurrency market and when the potential profits are higher. A comparable sum was lost by the whole cryptocurrency market between January and July of 2022 due to the continuous price falls seen by digital currencies. Similarly, crypto scams in the Middle East are under the control of the government. The United Arab Emirates (UAE) has created resources to help cryptocurrency investors learn how to spot and avoid fraud.
Fraudulent Activities And Hacking Incidents
Although overall scam income has dipped down this year, hacking involving cryptocurrency has increased by 58.3 percent to $1.9 billion as of July 2022. In 2021, the use of DeFi apps had a spectacular rise, primarily responsible for online scams’ growth. Since DeFi protocols are open source, they are highly vulnerable to exploitation because their code is easily examined by attackers seeking vulnerabilities. Most of these hackers were from elite North Korean hacking teams like Lazarus Group. These groups were responsible for around half of the cryptocurrency taken in hacking.
Also read : 5 Popular Cryptocurrency Scams and How To Avoid Them
Most Significant Cryptocurrency Fraud Attempt Of 2022
Finiko, the biggest scam of 2022, managed to steal $273 million worth of crypto assets from its victims. Chainalysis also found that darknet market income fell by 43% over the first and second halves of 2022 compared to the same period in 2021. It is probably due to the Hydra marketplace closure. A darknet market is a marketplace on the dark web where illegal items and services are traded for cryptocurrency. Scammers use several techniques, such as investment scams, phishing scams, upgrade scams, and fake crypto wallets or exchanges, to deceive people into making bogus cryptocurrency investments.
Also read : How To Avoid Cryptocurrency Scams in 2024
What To Do If You Fall Victim To A Crypto Scam In Dubai?
Retail investors thinking about buying cryptocurrency need to know the dangers and take extra precautions so they don’t end up like the other people who lost money. An individual’s privacy should always come first. Thus it’s imperative that calls, texts, and advertisements from unknown numbers be avoided. Since last year, the Dubai Police have had a dedicated unit geared towards investigating cyber crimes related to cryptocurrencies. This unit is known as the Digital Assets Crime Section. In addition, it is crucial to use exchange platforms authorized by the UAE’s financial authority when making any monetary transaction.
