The recent growth in cryptocurrency popularity has attracted not only investors and enthusiasts but also a surge of scammers looking to take advantage of the new market. A recent study conducted by a postgraduate student at Korea University has shown that South Korean crypto scams have primarily targeted young women through social media platforms, with 71% of romance scam victims being women and mostly aged 39 or below.
These devious schemes often involve the use of cryptocurrencies, fake coins, counterfeit foreign exchange transfers, or sham token trading platforms. With nearly 63% of the reported romance scams falling into this category, it’s evident that the cryptocurrency market has undoubtedly opened up new avenues for fraud.
According to the study, perpetrators mainly gravitate towards Instagram to carry out their deceptions, while also taking advantage of popular dating apps like WIPPY (14%) and Tinder (7%). It is estimated that these social media-based scammers make off with nearly half a million USD worth of fiat and cryptocurrencies monthly. This number, however, does not take into account the cases that go unreported.
Data from 280 cases reported to local police agencies in South Korea during the first half of 2022 were utilized in the study. Authorities, concerned about the growing rate of crypto-related scams, have taken measures to address the issue. In response, specialized crypto scam-fighting departments have been established, and officers are receiving training on the subject.
The study also sheds light on the various methods used by scammers, who often deceive their victims by asking for help in exchanging coins or fiat currencies using fraudulent platforms. Other schemes involve tricking victims into investing in phony altcoins, under the guise of making easy money. In some instances, scammers manipulate their victims by feigning dire circumstances like needing money for medical expenses or being trapped overseas.
Earlier this year, Uppsala Security, a regulation technology developer and security provider, reported that South Korean scammers are now targeting dating app users to lure them onto counterfeit crypto mining platforms, further illustrating the adaptability and persistence of malicious individuals in exploiting the nascent cryptocurrency market.
While cryptocurrencies and their underlying technologies undeniably hold great potential and promise, it is crucial to remember that there are individuals who will resort to nefarious means to take advantage of unwitting victims. This surge of scams focusing on young women highlights the importance of vigilant and informed investment practices, as well as the need for regulatory bodies to keep a keen eye on the burgeoning cryptocurrency landscape.
Source: Cryptonews
