Crypto Scams: The Effect on Consumers and Legitimate Businesses

Although the crypto industry has long been touted as the solution to some of the longest-running issues in the global economy, there's one problem it has been unable to shake off so far: fraud.

Scams have been in operation for centuries - from counterfeited versions of luxury products, to Ponzi schemes that have collapsed, leaving hard-working consumers out of pocket to the tune of billions of dollars.

The growth in awareness and demand for digital assets has seen sophisticated fraudsters turn their attention to duping those who may be inexperienced when shopping around for crypto.

Why are there so many crypto scams?It's an undeniable truth that the crypto world has become a hotbed for scams because of how con men have been allured by the prospect of anonymity once their crimes are complete.

A CipherTrace study revealed that, from January to August 2019 alone, losses at the hands of cybercriminals had topped a whopping $4.3 billion - a mix of outright thefts, scams and funds being misappropriated.

It's an insane sum that puts the ruse among some of the biggest scams of all time, let alone the crypto industry.

The case of Blockchain Cuties UniverseUnfortunately, legitimate companies can end up getting caught in the crossfire of crypto scams - having a detrimental effect on their business and the customers they serve.

Blockchain Cuties Universe, a crypto collectible game company, says it has fallen victim to such an incident.

The company says that, as a whole, the crypto community has been trying to clamp down on malicious activity that causes significant reputational damage to the entire industry.

Although Blockchain Cuties Universe believes the crypto world has a chance to become a place free of scams, it says vigilance from firms and users alike is essential.