As the recent FBIs IC3 2022 Internet Crimes Report has shown Investments Scams, in all their guises, are a really big problem. This spans, both fiat and crypto, and is robbing billions of dollars from unsuspecting victims in the US alone, which is likely still under reported. The 2022 Internet Crime Report puts losses for investment scams at $3.3bn, with crypto-related ones at $2.57bn. Up 127% and 183% respectively.
Given the size and importance, last year we partnered with DigitalMint.io, through the Cryptocurrency Compliance Cooperative (Crypto3c.org) to give victims of fraud a safe and secure way to report financial cybercrimes such as fraud and scams.
“The Cryptocurrency Compliance Cooperative’s collaborative efforts align perfectly with our mission of improving the financial ecosystem and supporting victims of online crime,” said Nicola Staub, Co-Founder and CEO of Cybera.
With this partnership we we’ve created a report, developed using anonymized data obtained through Cybera.io’s reporting tool, fully anonymous reports through the crypto3c.org reporting tool, social media analysis, and real-life communication with scammers conducted by the authors of this paper.
Although victims of all types of fraud (romance, government impersonation, rug pulls, etc.) reported instances throughout the year, an in-depth analysis of the dataset found that the primary scheme being reported was money lost to fake investment sites. Fake investment sites, and subsequently the newly coined term “pig-butchering”, have gained notoriety through media stories. Because of the prevalence and danger of these scams, representatives from both organizations came together to determine the best red flag identifiers for investment scams and potential “pig-butchering” scams.
About CYBERA
At CYBERA we’re on a mission to stop money laundering and help protect customers from scams and other financial cybercrime. We close gaps that allow cyber criminals to thrive by sharing crime data in real-time with financial institutions, fintech, and crypto exchanges, and coordinating a global response to support customers who have become victims of financial cybercrime.
CYBERCRIME WATCHLIST™ helps support firms to reduce fraud and money laundering and meet the requirements of the CRM as part of a holistic fraud and financial crime strategy.
CYBERCRIME VSR™ lets victims report fraud and scams to increase chances of recovery.
Unlike other data sources, CYBERA is a global solution, so is well placed to support crypto and Web3.
For more information, please visit https://cybera.io/
About Digital Mint
DigitalMint is the premier cash-to-cryptocurrency provider, enabling consumers to buy cryptocurrency safely and securely. Our mission is to empower consumers to take control of their financial future by utilizing digital currencies as a tool for financial access.
DigitalMint believes in your freedom to manage your money anywhere, without risk of fraud or deception. Since 2014, we have dedicated ourselves to providing secure access to Bitcoin and cryptocurrencies through a credible and transparent purchase experience.
For more information, please visit https://www.digitalmint.io/
About the Cryptocurrency Compliance Cooperative (Crypto3C)
The Cryptocurrency Compliance Cooperative (Crypto3C) is a collaborative association that advocates on behalf of the cryptocurrency industry to establish compliance standards, best practices, and regulatory controls. Our organization fosters an environment of cooperation between BTM operators, regulatory agencies, traditional financial institutions, and technology solutions within the industry to accomplish our mission. Through this medium of beneficial discussion between parties that directly impact or are impacted by the cryptocurrency industry, the Crypto3C will nurture legitimacy and acceptance around the globe.
For more information, please visit https://crypto3c.org.
