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Crypto scammers exploit COVID-19 fear to amass $2 million

Crypto scammers exploit COVID fear to amass million

Crypto scammers are exploiting the FUDs (fears, uncertainties, and doubts) around COVID-19 to rob them of money. Since COVID-19 – or Corona Virus – was declared to be a pandemic by the World Health Organization (WHO), the fear of the disease has affected all aspects of our life. The spread of the disease caused a massive market crash in both the traditional and decentralized financial ecosystems.

COVID-19 and crypto scammers

COVID-19 has had a highly negative effect on the price of Bitcoin. The panic caused by the disease caused Bitcoin to lose over 40 percent of its value in a few days’ time. However, a recent report by AnChain.AI shows that it was not only detrimental to the ecosystem directly, but indirectly as well. The disease has given crypto scammers an opportunity to target people panicking in the pandemic.

The malicious actors sold medical supplies, including masks and medicine, to people for crypto assets when, in reality, they did not possess the supplies they were selling. AnChain.AI worked together with an unnamed law enforcement agency in Asia to track millions of dollars worth of crypto assets that were stolen.

The report also cited the Corona Virus consumer fraud notice published by Interpol. In the notice, INTERPOL Secretary General Jürgen Stock revealed that Criminals are “exploiting the fear and uncertainties” surrounding COVID-19 to target innocent citizens that only seek to protect their health against the pandemic.

As per AnChain.AI’s report, the crypto scammers use trusted e-commerce platforms such as Amazon and eBay to find their victims. Then they lure the victims out of these apps into messaging platforms and settle a deal while taking the payment via crypto assets.

These kinds of scammers appeared in Asia but now target people across the world while the stolen funds flow back to Asia. In order to stay safe, buyers are advised to buy products from trusted marketplaces and do not conduct deals via messaging platforms.

Featured image by pixabay,

Ahmad Asghar

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

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