Ohio Division Ranked Cryptocurrency Scams as No. 1 Scam in 2021

Cryptocurrency scam

Cryptocurrency has been present rather frequently in the news lately, but not all of it has been for good reasons. The once positive attitudes toward cryptocurrency and decentralized finance have shifted drastically in just a few months. The Ohio Division of Securities is calling cryptocurrency scams the single most common scam that occurred in 2021.

The Importance of Raised Awareness

Until recently, cryptocurrency and other blockchain technologies were touted as being impenetrable, thanks to their decentralized nature. However, history has proven that crypto-enthusiasts might have set their expectations a little too high. Cybersecurity experts are now trying to warn those still interested in the cryptocurrency market about the importance of understanding just what they’re getting into.

The Ongoing Issue of Human Error

 The most common cause of cybersecurity scams has always been human error, and cryptocurrency is proving to be no different. At the precipice of Web-3, we need to realize sooner rather than later that no technology, no matter how cutting edge, will ever save us from our own follies. It is up to the users of these technologies to make a concentrated effort to ensure their own safety in the digital space.

What The Data Tells us

 Data gathered from last year’s BBB Risk Report suggests that 66% of victims of cryptocurrency scams lost $1200 on average. Chainanalysis, a data firm specializing in blockchain technology, reported that in total, cryptocurrency crimes netted a whopping $14  billion in 2021 alone. Cryptocurrency critics point to the rise in popularity of Decentralized Finance as the cause of these losses.

In their report, Chainanalysis admitted; “DeFi is one of the most exciting areas of the wider cryptocurrency ecosystem, presenting huge opportunities to entrepreneurs and cryptocurrency users alike, but DeFi is unlikely to realize its full potential if the same decentralization that makes it so dynamic also allows for widespread scamming and theft.”

The Future of Cryptocurrency 

As things stand now, the future isn’t looking too bright for cryptocurrency, but it’s hard to predict whether up and coming technologies will make cryptocurrency trading more or less secure; only time will tell. For the latest cryptocurrency news, keep checking back in on our website.

Citations:

https://go.chainalysis.com/2022-Crypto-Crime-Report.html?

https://www.bbb.org/article/scams/26628-2021-bbb-scamtracker-risk-report

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