Top Cryptocurrency Crime Trends in 2024
In 2024, cryptocurrency crimes have become more sophisticated and diverse, requiring increased attention and security knowledge from users. The article examines the main types of fraud, such as SMS phishing (smishing), initial coin offering (ICO) scams, market manipulation schemes (Pump and Dump), as well as threats associated with the use of artificial intelligence.
→ What are the types of cryptocrimes?
→ TOP 5 schemes used by attackers
→ a. Smishing
→ b. Initial Coin Offering (ICO)
→ c. Pump and Dump
→ d. Threats of AI
→ How to protect yourself from new types of cryptocrime
→ Expert Opinion: how to fight crypto crime in 2024
→ Frequently Asked Questions about cryptocurrency crimes
→ Conclusion
→ List of references
→ TOP 5 schemes used by attackers
→ a. Smishing
→ b. Initial Coin Offering (ICO)
→ c. Pump and Dump
→ d. Threats of AI
→ How to protect yourself from new types of cryptocrime
→ Expert Opinion: how to fight crypto crime in 2024
→ Frequently Asked Questions about cryptocurrency crimes
→ Conclusion
→ List of references
In 2024, the cryptocurrency world has encountered new trends in crypto crime that are becoming sophisticated and difficult to detect. Beginners who have just begun to get acquainted with digital currencies often become victims of fraudsters. Understanding the main trends of cryptocurrency crimes and knowing the methods of prevention will help to minimize risks and protect funds. In this article, we will consider the main types of crypto crimes, methods of protection and expert advice.
What are the types of cryptocrimes?
Crypto crimes cover a wide range of illegal activities, from identity theft to market manipulation. According to an analytical report by Chainalysis, the volume of illicit funds flowing into centralized services will already reach $8 billion in 2024.
Data as per report of Chainalysis
Child abuse materials, malware, terrorist financing, and illegal activities (fraud) have become the most common types of crimes. With the rapid growth of cryptocurrency users and the introduction of new technologies, criminals are adapting and creating advanced schemes.
Data as per report of Chainalysis
This article is based on the realities close to the average user, who encountered a typical cryptocurrency criminal using cryptocurrency in investments. The main types of crypto crimes in the context of cryptocurrency investments in 2024 include:
1
Smishing: fraud using SMS;
2
Initial coin offering (ICO) and token fraud;
3
Pump and Dump: manipulation of asset prices;
4
AI threats: use of artificial intelligence to create fraudulent schemes.
Smishing
Smishing is a type of phishing where scammers use SMS to trick users. Smishing often begins with the receipt of an SMS containing a link to a fake website that mimics a well-known organization or service, such as a cryptocurrency exchange or wallet. Scammers disguise their messages to make them appear legitimate, often using official logos and language that inspires trust. A user who receives such a message may click on the link and be taken to a site where they are asked to enter personal information, such as a username and password, private keys, or other sensitive information. Once the user enters this information, it immediately falls into the hands of criminals.
Initial Coin Offering (ICO)
An Initial Coin Offering (ICO) helps startups raise capital by selling tokens. This process involves four stages:
1
Creating a project;
2
Publishing a white paper;
3
Raising funds;
4
Launching and implementing the project.
However, the lack of regulation and oversight by government agencies has led to a large number of fraudulent ICOs. These scams come in the form of:
Empty Promises: Developers promise revolutionary technology and huge profits, but in reality have neither the technical ability nor the intention to implement the project.
Fake Teams: Scammers create fake project team profiles using photos and biographies of famous people or even fictional characters.
"Pack and Run" Schemes: Developers raise funds and disappear without fulfilling any obligations to investors.
Pump and Dump
This scheme involves artificially inflating the price of an asset and then selling it en masse at an inflated price. The scammers organize a buying spree of assets, creating the illusion of rising prices, then sell them at the maximum price, leaving the rest of the participants with devalued assets.
Stages of the Pump and Dump scheme:
Stages of the Pump and Dump scheme:
Organizing a group: The scammers gather in groups, often using instant messengers, forums, and social networks to coordinate their actions. These groups can have thousands of members.
Choosing a target: A cryptocurrency with low liquidity and a small market capitalization is chosen, since such assets are easier to manipulate. The scammers spread rumors and fake news about the prospects of this asset.
Starting the pump: Participants in the scheme buy the chosen asset en masse, causing its price to rise sharply. At this point, messages begin to appear on social networks and forums about the allegedly great future of this asset, which attracts the attention of unsuspecting investors.
Attracting Outside Investors: Misleading the public causes new investors to start buying the asset, which drives its price up even more. This creates the illusion of growing demand and increases the hype around the asset.
Dump: When the asset price reaches a pre-determined level, the organizers of the scheme begin to sell their assets en masse. This causes the price to collapse as the market becomes oversupplied.
Price Crash: The asset price drops sharply, leaving the last buyers with worthless assets. The scammers, meanwhile, have already withdrawn their profits, leaving the rest of the participants in the scheme with losses.
Threats of AI
Artificial intelligence is used to create sophisticated fraud schemes, including automated hacks and phishing attacks that are difficult to distinguish from legitimate activity. In 2024, the use of AI in crypto crime has reached a new level, making it more difficult to detect and prevent. Below are the main areas where AI is being used for criminal purposes:
Social Engineering: Criminals use AI to analyze user behavior online to predict reactions and use this information to commit fraud. AI creates fake social media profiles that interact with victims, building trust before committing fraud.
Fraud Bots: Criminals develop trading bots that use AI to automatically trade cryptocurrency. These bots manipulate the market by creating the illusion of supply or demand, ultimately deceiving users.
Deepfake technologies: Using deepfake technologies, criminals can create fake videos and audio recordings that imitate famous people or company executives. Such materials can be used for fraud or blackmail.
How to protect yourself from new types of cryptocrime
To protect yourself from crypto crime, it is important to follow a number of recommendations:
Checking sources of information: Every time you click on a link, check the originality of sites and services related to cryptocurrencies.
Using multi-factor authentication: This makes it more difficult for hackers.
Updating software: Timely updating of software reduces the risk of vulnerabilities.
Education and awareness: Regularly study new fraud methods and ways to protect yourself.
Expert Opinion: how to fight crypto crime in 2024
Vladimir Lazarev Blockchain technology expert of AML Crypto company
Cybersecurity experts recommend not only using technical means of protection, but also actively cooperating with regulators and platforms. It is important to report suspicious activities and participate in educational initiatives to improve cryptocurrency literacy. I also emphasize the need to contact specialized organizations, such as AML Crypto, to check suspicious transactions and comply with regulatory requirements. In addition, it is important to record and document all your crypto-related activities to ensure transparency and traceability in case of disputes or investigations. This includes keeping records of transactions, wallet use, and interactions with various platforms and filing a crypto incident report.
Frequently Asked Questions about cryptocurrency crimes
How to prevent cryptocurrency crime?
A comprehensive approach should be taken: technological measures, awareness and cooperation with regulators. Regularly check wallet addresses and use trusted services.
What are the safest ways to store cryptocurrency?
Safe methods include using hardware wallets, multi-signatures and cold storage. Do not store large amounts on online platforms or hot wallets, since at the moment the funds are stored on a centralized service, the funds do not belong to the user
What to do if you are involved in a fraudulent incident?
If you have become a victim of crypto fraud, the first step should be to immediately stop further transactions or interactions with suspicious users or platforms. Report the incident to law enforcement and specialized cybercrime agencies such as AML Crypto, providing all possible evidence: screenshots, emails, transaction records and any other documents.
Conclusion
Cryptocurrency crimes in 2024 are becoming more complex and diverse. It is important to stay up to date with new threats and protection methods to keep your digital assets safe. Regularly updating your knowledge and using proven protection methods will help minimize risks and resist fraudsters.
List of references
Check blockchain address using Btrace
In seconds, determine the risk level of the counterparty’s address, find out the source of his funds and make an informed decision about interacting with him.
PREVENT FUNDS BLOCKING
PROTECT YOURSELF FROM SCAMMERS
AVOID TROUBLE WITH THE LAW
We also recommend