How crypto scam hurts the legitimate businesses

The crypto industry has been advertised as being the panacea of the problems occurring in the global economy, however; crypto scams is one issue that even the crypto sector has not been able to overcome so far.

For centuries, human beings have been involved in scams of various natures. With the advent of technology, scammers started scamming on this platform. From Ponzi schemes to fake wallets; the crypto industry has seen it all, and new ways of scamming are increasing rapidly. The fraudsters have been implying sophisticated scamming techniques and ripping off the crypto enthusiast with their coins.

The veil of anonymity provides these scammers with an array of opportunities to carry out their shady schemes. The naïve crypto customer is allured with unbelievable offers by these shady exchanges, and they, in turn, deposit their funds and become another victim of this game.

How much is lost to crypto scams?

Reportedly, a little over four billion dollars ($4.3) has been lost in 2019 in these cyber offenses. Most of the losses are attributed to PlusToken, which is a pyramid scheme, according to the Chinese official’s allegation. About one hundred thousand users are believed to have been affected by this scam, moreover; the amount held by this company is a little over two billion dollars ($2.9B), which is considered to be the biggest scam of all times.

Not only crypto enthusiasts fall victim to such shady schemes, but legitimate firms can also get caught up in these scams.

Fraudsters first observe a company that is thriving and is liked and trusted by the crypto community; they then strike. Likewise, a crypto collectible game firm Blockchain Cuties Universe stated that it been a victim of such occurrence.

It alleges that a Russian investment project had been infringing on its copyright, and using the company’s graphical assets to scam the gamers for the fiat. An identical version of the Blockchain Cuties Universe website was created to lead the gamers to believe that it was affiliated with the original firm.

The chief executive officer (CEO) of Blockchain Cuties Universe, Vladimir Tomko, stated that they have been doing their best to protect their reputation and the gaming community. Currently, they are doing all the paperwork to take the necessary legal actions.