Feb 17, 2023

Crypto Scam Revenue Plummets 46%, Romance Scams Stay Immune

Cryptocurrency scams have been a growing concern in the web3 space. In 2022, overall crypto scam revenue dropped by 46% to $5.9 billion due to poor market conditions. However, two types of scams managed to stay relatively immune to the price falls — romance scams and giveaway scams.

According to a Feb. 16 crime report from Chainalysis, the decline in scam revenue was primarily due to lower crypto prices. Generally, lower crypto prices lead to lower scam performance.

The data shows that while romance scams had lower overall revenue as a category, they had the highest average victim deposit size in the year — with the average victim losing just under $16,000, nearly 3x more than the next biggest scam type.

Chainalysis explained that these scam types are most likely to persist when crypto prices are down because they target victims’ compassion rather than greed.

“That kind of emotional pitch is probably equally effective regardless of trends in the wider market, because the victim’s primary goal isn’t to get rich quick, but rather to help someone they believe to be a potential romantic partner,” the firm wrote.

These scams, and particularly “pig-butchering” scams, have been seen as a growing area of concern within crypto. A United Kingdom investigation published on Jan. 29 found that half of all crypto companies involved with scams in the state were linked to pig-butchering scams.

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Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.