High Number of Europeans Became Victims of Scams and Ponzis in 2020

With the ever-growing cryptocurrency industry, the number of fraudulent activities has also spiked industry. As the industry has now gained worldwide adoption, scams and fraudulent activities are also spreading on a wider scale worldwide.

The Eastern European region is currently facing a very dire situation when it comes to rising scams and Ponzi schemes. Just recently, research was conducted to measure the number of scams and Ponzi schemes rising for cryptocurrencies in different regions.

This is when the Eastern European region has been established as to facing a tremendous number of cybercrime activities. In the Eastern European region, the highest number of cybercrime activities originate from users from darknet markets and scam victims.

It has been established that the Eastern European region ranks at number two when it comes to being exposed to illegal activities. The research team has identified it with the help of tracing addresses related to cryptocurrencies.

At present, Africa is the region that ranks at number one for having the highest number of victims from crypto-scams and Ponzi schemes. The on-chain data analyzing firm that has carried out its research on scam and Ponzi scheme-related activities is Chainalysis.

The data around the research was shared by Chainalysis on Wednesday, September 1, 2021. On the other hand, Africa and Latin America’s cryptocurrency economy is much lower than the Eastern European region. At present, the Eastern European region has a much higher user following than other regions, so it is normal for the region to have a high scam/Ponzi scheme rate.

Chainalysis has confirmed that the data it has performed its research on is from the year 2020. There are high chances that the scams and Ponzi schemes rate may have arisen since the beginning of 2021.

In the research, Chainalysis has provided a breakdown of the fraudulent cryptocurrency activities per region. In the research, the firm has collected data per region from the month of July 2020 to the month of June 2021.

In the research, Chainalysis has provided information as to how much funds have been transferred from Eastern-European region-based crypto-wallets to Ponzi schemes and scams. The research reveals that in the Eastern-European region alone, the total value of transactions made as a result of Ponzi schemes and scams is $815 million.

The firm has revealed that the majority of the time, these activities include victims that have ended up sending their money over to scammers. The firm has collected the data through its research on the addresses linked with illicit crypto-transaction activities.

The firm has also confirmed that the Eastern European regions are on top when it comes to transactions being made at the darknet markets.