HomeNewsAn Average of $189K Was Lost Daily to Crypto Scams and Hacks Since the Beginning of the Year
An Average of $189K Was Lost Daily to Crypto Scams and Hacks Since the Beginning of the Year

An Average of $189K Was Lost Daily to Crypto Scams and Hacks Since the Beginning of the Year

Last updated 31st Jan 2023
  • Crypto Scams and hacks are on the rise.
  • So far, investors have lost nearly $42B from crypto heists, translating into a loss of $189K a day.
  • Scammers employ different means, the most popular ones in 2022 being exit scams and exploits.

The crypto scam epidemic has worsened recently, costing investors billions of dollars. According to a BanklessTimes.com analysis, as of August 10, 2022, crypto scams had lost roughly $42B. That translates into a daily loss of an average of $189K a day.

While there are many legitimate players in the cryptocurrency space, there are also many scammers looking to take advantage of unsuspecting victims. These incidences will continue growing as the crypto asset market becomes more and more popular. This alarming trend results from scammers taking advantage of unwitting investors looking to make a quick buck or oblivious to the threats lurking in the space.
BanklessTimes CEO Jonathan Merry

Leading Forms of Crypto Scams

Crypto scams come in all shapes and sizes, but the most common ones in 2022 are exit scams and exploits. Exit scams are when a company suddenly disappears with its investors' money, while exploits are when hackers take advantage of security vulnerabilities to steal people's cryptocurrency.

This year's largest heist was the Terra Classic Bank Run, which netted scammers $40B. The Ronin and Wormhole exploits are the other significant crypto scams that have happened this year. Scammers made away with crypto worth $625K and $326K from the projects.

Other Common Forms of Crypto Heists

Other common crypto scams include phishing attacks, Ponzi schemes, and fake crypto exchanges. Phishing attacks are where scammers try to steal people's passwords and personal information by sending them fake emails or texts.

Crypto Ponzi Schemes

Meanwhile, Ponzi schemes involve scammers promising investors unrealistic returns on their investment. These then use new investors' money to pay off old investors. And the scheme always collapses eventually, leading to significant losses for everyone involved.

Fake Exchanges

Fake exchanges are where scammers set up websites that look like legitimate exchanges but instead steal people's money. They do this by asking for people's login information and then stealing their crypto assets.

Protecting Yourself From Crypto Scams and Hacks

Although these scams come in many different forms, they all have one thing in common: They're designed to take advantage of people's trust and greed. So if you're considering investing in cryptocurrency, be sure to do your research first and always be aware of the risks involved. Otherwise, you could end up losing everything.

Additionally, be vigilant when checking emails and texts. Make sure that the senders are who they say they are. Don't click on any links or attachments unless you're sure they're safe. Also, use strong passwords and two-factor authentication whenever possible.

Beware of "Hot" Coins or Investments Offers

Moreover, Be especially careful if someone is trying to sell you a "hot" coin or investment opportunity. Do your research before investing in any project or ICO. Make sure you are dealing with a reputable company or individual. Plus, only invest in coins you understand well and are confident in.

Only Deal With Reputable Crypto Exchanges

Finally, be careful when trading on crypto exchanges - only use trusted exchanges with good reviews online. Don't give away your login information to anyone; always double-check the website's address before logging in. Back up your funds regularly and store them in cold wallets.

The rise in cryptocurrency scams is a cause for concern. However, by being aware of the risks and taking precautions, you can protect yourself from losing your hard-earned money.

Elizabeth Kerr

Elizabeth Kerr

Elizabeth is a financial content specialist from Manchester. Her specialities include cryptocurrency, data analysis and financial regulation.