While Crypto Although the market flourished in 2023, criminals also increasingly took advantage of their risk. The Russian central bank has introduced a new currency report This shows that illegal activities in the country have increased by 15.5%.
The total number of illegal practices in 2023 will be 5,735. A large part of them are pyramid schemes. This is a fraudulent investment model in which profits are made not through actual business activities, but through the recruitment of new participants.
Social media is a source of fraud
The Russian bank identified no fewer than 2,994 such pyramid schemes. This represents a growth of 150% compared to the previous year. Crypto plays an important role in this growth. In 2023, almost all pyramid schemes and illegal brokers offered investments in internal tokens or accepted contributions in cryptocurrency.
Social media is playing an increasingly important role in recruiting victims. About 44% of illegal lenders use the Internet solely to advertise their services. They do this primarily through social media sites, popular advertising platforms and online groups.
The bank counters by using surveillance systems to identify illegal actors. It works closely with law enforcement agencies, internet regulators and the financial industry to combat fraud. This has led to the blocking of more than 1,500 fraudulent websites and educating the public about the signs of financial fraud.
Millions were lost to crypto phishing scams
In 2023, phishing scams in the crypto sector saw a worrying increase, with losses of $295 million for 324,000 victims. It Purse Emptyr Report by Scam Sniffer highlights how crypto criminals use advanced techniques to defraud investors and steal their digital assets.
These scams, often disguised as legitimate emails, websites and social media messages, aim to steal sensitive information such as private keys and login credentials. Despite efforts to stop these practices, fraudsters continue to find new ways to circumvent regulations. Like in the recent cases where groups like Monkey Drainer and Inferno Drainer stole millions.