Old techniques, new technologies : exploring patterns from scammers that commit financial fraud via cryptocurrency

This study investigates cryptocurrency-related scams using data from two state scam trackers, focusing on scam types, financial losses, and scammers' methods of contact. Initial findings reveal that cryptocurrency scams share similarities with other online financial scams but maintain unique characteristics tied to digital platforms and cryptocurrencies. The most prevalent scam types for crypto scams are fraudulent trading platforms and pig butchering scams, with victims being predominantly male and introduced to scammers primarily via social media or online messaging platforms. Scammers use a variety of titles to instill an appearance of legitimacy when it comes to cryptocurrency investment behavior: figures, financial experts, and known acquaintances. Scams initiated through personal connections, particularly romantic or familial identities, lead to the largest financial losses. Overall, these results suggest anonymity and digital communication make crypto scams more financially damaging than traditional scams. Our findings can assist in educating the public and improving fraud prevention through focusing on understanding how cryptocurrencies are facilitating new and more costly financial criminal opportunities.