Press "Enter" to skip to content

Report: Whale Alert Reveals $24 MILLION Tapped from Victims in 2020

A new report from Whale Alert shows that crypto scams are on the rising stage and scammers are getting smarter with the help of new technologies.

In the past four years, old and new scammers have exploited many victims world over and tapped approx. “38 million US dollars in bitcoin alone… and $24 million so far in 2020. These figures are “excluding Ponzi schemes, which are a billion-dollar industry on their own.”

Source: Whale Alert Medium Blog

Whale Alert, one of the largest blockchain and cryptocurrency transactions data tracking and analytics providers mentioned in the medium blog on July 4 about its new scam alert tool.

The new blockchain crime reporting, tracking, and analysis tool of Whale Alert help to provide accurate data on prevailing shady activities or scams.

The reports indicate that the scam market is uprising due to high profits because of “no taxes, minimal effort, and zero risk.”

Further, the crime monitoring resource predicts that due to these factors, the end of 2020 may witness the number of crypto scams to fold over 20 times since 2017. The figures suggest annual revenue collection by crypto scams would be no less than $50 million.

“Some of the most successful scams made over $130,000 in a single day with nothing more than a one-page website, a bitcoin address, and a decent amount of YouTube advertising. Another managed to rake in over $1.5 million US dollars in 6 months (and is still going strong) promoting a fake exchange with an amateurish website riddled with spelling errors.” The reports cited with the help of a tracking tool.

Whale Alert Presents Reasons on Rising Crypto Scams

The swindling acts are mounting due to professionalism, aggressiveness, new methods, and techniques. Siphoning money from the victims is becoming much relishing for the scammers especially due to the mushrooming crypto markets. Naïve cryptocurrency users and buyers are less educated technically as well.

While collecting data from various websites, reports, and bitcoin addresses- the crime tracking company says:

“The results can be summarized in three words: crypto crime pays.”

In a recent analysis, Whale Alert shows that “Giveaways” are the most prominent scam and prevailing globally. Giveaway scams often time feature a celebrity like Elon Musk or recognized exchanges to attract cryptocurrency buyers. 

In giveaways, the scammers promise to pay an alluring amount in BTC/ Eth or other altcoins in return of the initial investments by the buyer which may range from thousand to $300,000.

Also, there is a mention of “Deepfake” technology (with the help of artificial intelligence and machine learning, the person in a video can be replaced by another person doing the same actions and gestures imposing the same visual and audio content) which can be soon employed by the scammers in the crypto industry too.

The rising scale of crypto scams suggests that the team of professional hoaxers is working towards this billion-dollar industry and tricking people. powered by Whale Alert shows few more popular scams and felony which victims have to vary off. These are- ransomware, theft, bitcoin recovery, video scams, malware, fake ICO’s, Ponzi scheme, dark web, fake tumblers, and sextortion – a popular offense in which the scammer tricks the victim by sending an e-mail stating that their webcam got hacked and the scammers have recorded them watching porn. They are told to make a payment or risk the video being released.

Imp Thought on How to Limit Crypto Scams

To minimize the imminent danger to the society and to curb the scams, Whale Alert suggesting to the crypto community and blockchain companies to play a major role while passing on their messages via giveaways, to the people at large. Also, to stop these kinds of promotions and try to spread education on not spending their money on suspected scam addresses, just for few bucks or digital assets.

“One thing is very clear: whatever is being done right now to stop these criminals is not enough and if we don’t act as a community, the reputation of blockchain might not be able to recover in the long run.”

Be First to Comment

Leave a Reply

Your email address will not be published. Required fields are marked *