Revenue of Crypto Scammers Fall By 33% Due To COVID-19

This year is proving to be tough for virtually everyone in the world. But no one had suspected that it would be tough for Bitcoin scams as well. The popular forensics firm Chainalysis found that the scammers have been hit too. Their revenue has dropped by 33% since the outbreak became a pandemic. Though the reason may not be what you think it is.

Ever since COVID-19 started spreading like wildfire, the world has felt the heat. Entire countries have been on lockdown mode, economies have tumbled, millions have been infected and many have died. This is truly an unprecedented event. While many have lost their jobs or businesses, Bitcoin scammers have also experienced the same.

Bitcoin Scams Fall In Revenue

Bitcoin Price

Research from Chainalysis shows that after the first week of March, scammers’ revenue has tumbled. The weekly average amount earned by them has fallen from $4.2 million to just $2.9 million in bitcoin. That is one heck of a fall. Many experts had expected that scams and hacks will increase now that everyone spends more time in their homes. The data paints a different picture.

Bitcoin scammers mainly trick people with bitcoin investment scams and Ponzi schemes. In the current context, they are also luring people in by promising a cure for the coronavirus. Most people simply do not fall for this kind of obvious trickery. However, there are some gullible people out there who get tricked. And they pay the price by losing their Bitcoin.

Although the revenue of the scammers may have fallen, they are attacking the same number of people. In fact, in terms of crypto, they are making the same amount as before. The only problem for them is that prices have crashed due to the fear of pandemic. So, in terms of fiat, their revenue has decreased by 33%. If they choose to sell later, when prices are high, the pandemic may not have any effect at all.

In the report, Chainalysis stated,

“We believe scammers are still receiving those same payments from roughly the same number of victims per month. The payments are just worth less now due to Bitcoin price drops.”

Temporary Effect

Bitcoin Scam

As the world starts healing from the pandemic, world economies might recover. The bitcoin markets will recover soon too. After bitcoin’s halving, the market is expected to enter into a bull run. Once prices start to rise again, crypto scammers’ revenues will rise again. In fact, higher prices attract more hackers and scammers into the industry. Where there is money involved, such things sadly happen all the time.

Read also:Signs Of Bitcoin Pump and Dump Scams

If you are invested in Bitcoin as well, you should store them in a secure manner. Stay wary of any phishing emails or texts you might receive. Make sure you check a piece of news from other sources before believing it. Otherwise, you might fall prey to fake news. All this is important for the safety of your crypto.