Bitcoin (BTC) Ponzi Schemes Take Massive Hit During COVID-19 Pandemic, but You Have to Watch Out for

Bitcoin (BTC) Ponzi Schemes Take Massive Hit During COVID-19 Pandemic, but You Have to Watch Out for thumbnail
News Fri, 04/10/2020 - 15:27 Alex DovbnyaThe operators of cryptocurrency Ponzi schemes are not immune to falling prices, but phishing and blackmailing scams are on the rise Cover image via stock.adobe.com According to a new report unveiled by blockchain sleuth Chainalysis, the revenues of cryptocurrency Ponzi schemes have cratered 33 percent since March 8 (from $4.2…

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Fri, 04/10/2020 – 15:27

Alex DovbnyaThe operators of cryptocurrency Ponzi schemes are not immune to falling prices, but phishing and blackmailing scams are on the rise

Cover image via stock.adobe.com

According to a new report unveiled by blockchain sleuth Chainalysis, the revenues of cryptocurrency Ponzi schemes have cratered 33 percent since March 8 (from $4.2 to roughly $2.9 mln).   

However, phishing, blackmailing, and email spamming scams are picking up the slack since the coronavirus pandemic represents a goldmine of new stories for fooling gullible victims.   

No, people still invest in Ponzi schemes 

At first blush, it might seem that those who typically fall for crypto investment shams adopted a more frugal attitude towards their money, with 17 mln people filing for unemployment benefits only in the U.S. 

However, Chainalysis explains that the 33 percent drop in revenues has a more prosaic reason — the crypto market crash that happened in the middle of March. 

The number of transfers to some well-known Ponzi schemes actually saw a significant increase last week, but scammers are profiting less from every transaction due to lower prices. 
image by chainalysis.com

Elaborative COVID-19 scams  

Ponzi schemes and investment responsible for 95 percent of all losses, but blackmailing and phishing scams are actively chipping away at their share during the COVID-19 pandemic. 

Fraudsters are impersonating the WHO, the NHS, and other health organizations to collect coronavirus donations with the help of fake e-mails. They might also threaten to infect you or your family with the novel virus. 

As reported by U.Today, Interpol warned about cybercriminals attacking hospitals with Bitcoin (BTC) ransomware.  

About the author

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry — from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. He’s particularly interested in regulatory trends around the globe that are shaping the future of digital assets.

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