The month of October 2022 recorded the highest value of crypto hacked and stolen, at over $1 billion, states an analysis by StockApps.com.
Commenting on the data, StockApps top analyst, Edith Reads cautioned investors to be vigilant and make use of complex security systems, to protect their assets.
“Crypto frauds are becoming more popular day after day. You’d think criminals would slow their activity due to the crypto meltdown, but it’s not happening. As the crypto market tries to steady, scammers and hackers are on standby. Any little opportunity, they wipe you out clean.”
Ms Reads noted that most scammers use fake investment plans on various social media platforms and Ponzi schemes to lure unaware investors, then steal from them.
“Most victims of scams attribute their loss to investment opportunities on social media platforms. Instagram and Facebook are the most notorious platforms for fraudsters. They use attractive posts and videos to entice people into sending them money. Some promise high returns quickly, while others pose as crypto exchanges or brokers,” a statement by StockApps.com read.
Ms Reads said scammers are witty as they develop schemes that guarantee huge returns and insist on crypto as the sole mode of payment.
The analysis highlighted a case where in February 2022, a federal court in San Diego, California, charged the creator of BitConnect, Satish Kumbhani, with running a $2.4 billion global Ponzi scam.
“The company’s creator misled investors about cryptocurrency funding. He talked about tech offering investors significant returns by following crypto exchange markets.”
In May this year, the Chief Executive Officer (CEO) of Mining Capital Coin, Luiiz Capici Jr was indicted in a $62 million global investment fraud scheme, where he misled investors into mining new cryptocurrencies.
“Investors should look out for anything strange before they affect that transaction.”
Ms Reads warned investors not to share their private keys with anyone, store the cryptos in a hardware wallet and use two-factor authentication wherever possible.
Two-factor authentication adds an extra layer of security to your account,” she said