Scammers Make Ether Network their Preferred Target

Girish Chugh

February 6, 2019 11:31 am

Crypto Scam

Scammers Make Ether Network their Preferred Target
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Since the crypto industry exploded, many people have learned how to develop new cryptocurrencies, or let’s say how to build infrastructure models such as digital asset trading platforms and more.

Such developments have led to the emergence of different scams, as the blockchain surveillance company, Chainalysis, in latest report highlights, over the past two years fraud in Ethereum ecosystem has gone haywire, making it “the cryptocurrency of choice for scams for a variety of reasons.”

Scammers Prefer Ethereum Blockchain

Chainalysis, the blockchain monitoring company releases a series of reports regarding the recent “trends in crypto crime.” The company’s report “Crypto Crime Series: Decoding Ethereum Scams” reveals how ethereum (ETH) is the top choice for crypto scams across the ecosystem.

In 2017, ETH worth $17 million was stolen in scams, but last year around 0.01 percent of ETH was involved in fraud worth $36 million. Chainalysis report states, “The number of scams declined through 2018, although those that remained were bigger, more sophisticated and vastly lucrative.”

Further, the report explains, “From late 2016 through the end of 2018, Chainalysis has identified over 2,000 scams on Ethereum that have received funds from nearly 40,000 unique users. Scam activity increased dramatically in 2018 with nearly 75% of scamming activity taking place that year.”

Mainly four types of scams are common within the Ethereum space – downright fraud, a Ponzi project, the ICO exit scam, and phishing attempts.

“Innovative criminals executed more complex Ponzi and ICO exit scams that generated millions of dollars in income. These more sophisticated schemes dominated the second half of the year,” the series report outlines.

Read more about Ethereum here

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