2018 was riddled with several crypto hacking incidents. What most people don’t know is that the number of scammers also skyrocketed. According to a new report from a blockchain research firm, it was made known that the total amount of Ethereum token (ETH) which was scammed off their owners in 2018, doubled that which was stolen in 2017.
ETH Scam Victims Quadrupled
In 2017, an estimated 17 million worth of ETH was stolen by these scammers. In 2018, the report showed that about $36 million worth of ETH was stolen by them. This is clearly showing that criminal activities in the crypto scene increased in the year 2018.
2018 also saw the increase in the use of software capable of infecting victim’s systems with malware which mines crypto without alerting the owners or the system or even stealing their passwords.
According to the report, these ETH scammers generally stay away from anything technically. Instead, they employ tricks designed to deceive their victims into trusting them enough to hand over their ETH tokens voluntarily. Most of the time, the scammers tend to promise their victims that they will help invest their tokens for a fixed profit daily, monthly or weekly.
According to the report, not less than 40,000 people were victims of these elaborate scam in 2018. For 2017, the number stands at just 10,000. This means the number of victims quadrupled while the amount lost doubled. So far, about 2000 crypto wallet associated with these scammers has been identified
According to the report, the increase in number can be credited to the increase in the number of crypto pyramid schemes in 2018. Just like with any type of pyramid schemes, the first set of people who invested in the platform get to see a return on their investment for other who invested late, they most likely won’t receive their capital or profit.
The fact that the market is in a prolonged downtrend and with little or no profit potential, made it possible for investors to fall victim of this high yield investment.