Losses from digital currency crimes have grown 79% since 2020. What needs to be done to improve the situation in 2022?
Cryptocurrencies continue to spark interest, and, unfortunately, crypto scammers are finding new ways to steal crypto. In our LATOKEN reviews, we write a lot about how not to become a victim of a cryptocurrency scam, and for a good reason.
Don’t forget that the crypto market is built on reputation. So before investing in any crypto project, you must carefully study it and assess the prospects in the market. In addition, it is essential to be careful when choosing a crypto exchange. For example, LATOKEN is an international, one of the leading crypto exchanges, and also IEO launch platforms with a focus on security and useability.
Crypto scammers stole a record $14 billion in 2021 largely thanks to the development of the decentralized finance (DeFi) sphere, writes CNBC, citing analytical company Chainalysis. Losses from digital currency-related crime have been up 79% since 2020.
Fraud and crypto scams accounted for the largest number of crimes, followed by thefts, most of which result from hacking blockchain projects. Chainalysis noted that the decentralization of DeFi is the reason for the fast growth of cryptocurrency scams and theft.
DeFi’s transaction volume grew by 912% in 2021. Kim Grauer, head of research at Chainalysis, explained that many of the DeFi protocols being launched have vulnerabilities. They accounted for 21% of hacks last year.
Compared to 2020, the amount of stolen digital assets increased by 516%, to $3.2 billion, 72% accounted for by DeFi protocols. Losses from crypto scams increased by 82% to $7.8 billion.
With all hopes that the situation will change for the better in 2022, we would like to remind you that you shouldn’t store data in the public domain, use the same passwords, be fooled by social networks’. You should always check the legitimacy of websites and keep track of your phone number if used for two-factor authentication. Dealing with crypto can be tricky, but you won’t become a victim of a cryptocurrency scam if you follow these simple rules!
Check out our other articles that will definitely be helpful:
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- LATOKEN Review: Say NO to Crypto Scams and Enjoy Safe Trading
- Shitcoins as Another Type of Crypto Scam. What Are They and How to Avoid Buying Them?
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LATOKEN crypto exchange does not provide any investment, tax, legal, or accounting advice. This article is written for informational purposes only. Like other assets, cryptocurrency is subject to market risk. Please do your own research and trade with caution.