Findings from a report published by the Better Business Bureau (BBB) show that the rate at which cryptocurrency scams are spreading is astounding, especially in North America.
They are becoming so prevalent to the point that they are deemed to be some of the second riskiest scams compared to any other region in the world.
According to the report released in early March, the cumulative loss damage caused by these digital scams to private businesses and other organizations has totaled to around $3000. This amount is notably higher than the amount that was lost in the previous year, which was $900. The region in question is the Canadian/American region.
The Extent of the Effect
The witty tactic in which they use to lure unsuspecting victims is to promise them a generous return on the invested currency. Most of these offers are extended through the email.
Furthermore, the Better Business Bureau report reveals that a portion of the losses is incurred in exchange and trading platforms.
The organization considers cryptocurrency a risky venture given the absence of a customer support system that would manage the happenings of the blockchain in the eventuality of a hack or a scam.
Actions like authorized reversals, which would be especially vital in the unfortunate event where some amount is fraudulently transferred in another account, are nonexistent when it comes to dealing with crypto. A case study from an Arizona victim who got scammed while investing in cryptos provides the basis for these research findings.
Comparative Risk Indices
A crypto exchange company titled C2CX is in the limelight for all the wrong reasons after it was discovered to be responsible for a third of the registered investment losses.
In addition to crypto-related scams, the BBB report also found around ten thousand instances of illegal e-commerce platforms. An index ranking of 93.8 makes crypto scams is a distant second from fake employment offers, which came first in Better Business Bureau's list with a whopping rank of 153.6. The third in the list is online purchases with a rank of 93.6.