The cryptocurrency market has seen another year of exponential growth in 2021, with a 500% increase in total value. Fraud is also on the rise, doubling between 2020 and 2021 to $14 billion, according to the latest report from financial analysis firm Chainalysis.
The report points to an increase in elaborate scams that allow cryptocurrency management platforms to be hacked and funds to be stolen. Chainalysis regrets both the insufficient level of security of many such platforms and the lack of regulation and control by public authorities. For example, most of these platforms are not obliged to have insurance to reimburse their customers in case of theft.
However, Chainalysis recalls that the most common fraud is also the simplest: it uses a basic phishing scheme that invites internet users to invest in a supposedly promising new cryptocurrency and then steals the amount they agree to pay.