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Rise in Crypto Prices Resulted in Increased Crypto Fraud

Cryptocurrencies used to be an asset class that was widely misunderstood, if it was understood at all, and few if any people were genuinely interested in it in the mainstream. While the first of these two facts still remains true to this day, the latter has changed quite a bit because of the fact that more and more people are getting in on the crypto bandwagon, and the rise in bitcoin prices probably had a significant impact on this.

However, crypto prices rising has also resulted in problems because of the fact that this is the sort of thing that could potentially end up making it so that more frauds occur as well. An education platform that focuses on crypto knowhow by the name of Crypto Head has revealed their research which shows that well over 80,000 cases of crypto related fraud occurred in the US alone.

The truly sinister thing about this number is that it shows an incredible 24,000% increase over a period of just five years. The number was closer to 340 back in 2016, so the increased demand for crypto has proven to be a veritable goldmine for malicious actors that are trying to cash in on this sort of thing.

Uneducated consumers that are trying to get rich quick due to stories that they are hearing about bitcoin will be liable to fall for scams since they would not be all that aware of what true crypto investing is about. Efforts should be made to ensure that these consumers and investors are given proper education in this regard, otherwise these cases of fraud would just start to increase evermore and this will result in significant and very real financial losses that could have wider impacts on global economies as well due to how valuable bitcoin in particular is starting to become.


Read next: As more consumers are adopting online banking services, the rate of frauds has increased up to 150 percent across the world

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