Feb 17, 2023

Romance Scams Prove Resilient to Crypto Price Falls

Crypto scam revenue in 2022 dropped by almost half compared to 2021, according to a Feb. 16 crime report from Chainalysis. The decrease in scam revenue was mainly attributed to the fall in crypto asset prices. Nevertheless, two scam types managed to remain relatively unscathed – romance scams and giveaway scams.

Yearly crypto scam revenues from 2017-2022. Source: Chainalysis.

Chainalysis noted that the revenue generated from most scam types follows a three-week lag between price moves and changes in revenue. However, the revenue generated from romance and giveaway scams do not show a positive correlation with Bitcoin’s price.

Romance scams, while having the lowest overall revenue, had the highest average victim deposit size in the year – with the average victim losing around $16,000, nearly three times more than the next biggest scam type.

Average losses for victims throughout 2022 by scam type. Source: Chainalysis.

Romance scams typically involve building a relationship with the victim, with the scammer convincing them that they need their help. Chainalysis believes that these scams are likely to persist when crypto prices are down as they play to a victim’s compassion rather than greed.

For example, a United Kingdom investigation published on Jan. 29 found that half of all crypto companies involved with scams in the state were linked to romance scams, also known as “pig-butchering” scams.

In light of these findings, crypto firms and users should be aware of the risks of romance scams and the need for caution when it comes to NFT promotion and marketing. While there are many legitimate ways to promote and sell NFTs, such as through Twitter NFT marketing, it is important to work with a reputable NFT marketing agency or web3 agency to ensure the safety of your assets.

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.