• BBB indicates that $8M was lost in crypto fraud.
• The president of the Better Business Bureau believes there is a lot of misinformation about cryptos.
Recently, Better Business Bureau, a non-profit organization, spoke about the crypto-scams that affected decentralized commerce during 2021. According to the BBB, in 2021 alone, $8M was lost in crypto fraud, and by 2022, the number is expected to rise.
A crypto fan, Marez Chris, has said that the decentralized market has potential. However, it requires prior study and caution to invest in the tokens. The president of the Better Business Bureau, Janna Kiehl, shares this same opinion at BBB, adding that there is a lot of ignorance about the decentralized market.
Better Business Bureau investigations into crypto scams
The non-profit organization BBB has not limited itself to researching the crypto market to conclude how exposed it is to fraud. According to the Better Business Bureau agency director in the Panhandle Texas region, around $8M in crypto thefts were reported in 2021 alone. Kiehl adds that this figure is alarming considering that the funds are withdrawn from local finances in the US.
Both Kiehl and crypto investor Marez Chris believes that the crypto industry should be engaged with caution to prevent fraud. Marez suggests that decentralized commerce has a significant disadvantage; if your funds are stolen in a heist, the probability of recovering the stolen money is very low as most national authorities do not regulate it.
BBB warnings increase with the passing days
The Better Business Bureau has remained firm in its warnings about the crypto market, and in previous days, the agency spoke about a new study on crypto-scams. BBB clarifies that crypto thefts have almost tripled in 2021, hinting this could be due to the most popular tokens like Bitcoin reaching all-time highs. BTC reached an ATH of almost $70,000 in the last quarter of the year but eventually lost value due to regulations.
The Better Business Bureau also discussed the most frequent crypto-heists where cyber thieves promise novice investors a doubling of their money after making a minimum investment in fiat. All the money sent to these underground crypto companies disappears, and those affected have no support agencies to report the problem.
Following the Better Business Bureau’s comments on crypto, Barnhart Scott, who holds the attorney general’s office in Indiana, said there is a lot of misinformation about the market. Barnhart adds that the decentralized industry must be made known to solve crypto-scams and thus minimize the risk of potential fraud. However, the BBB indicates that crypto thefts are becoming more complex, with even celebrities being included on social media to make the fraudulent schemes look legitimate.