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Incidence of cryptocurrency fraud rose massively in 2021

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In New York, across the United States and in Puerto Rico, investment opportunities and the chance to make money are an irresistible temptation. This is true for savvy investors, those just getting started and anywhere in between.

There is always a danger when a new and popular product gains prominence with advisers, brokers and others touting its benefits and potential for profit. One such product is cryptocurrency.

For those considering investment in Bitcoin, Ethereum and other forms of crypto, it is important to be cognizant of the various risks. One of the worst is unscrupulous individuals committing fraud against unsuspecting investors.

In 2021, crypto theft caused $14 billion in losses to unsuspecting investors

Analysts looking at the past year have determined that crypto theft and scams victimized investors to the tune of approximately $14 billion. Losses in crypto rose by 79% from the previous year.

The predominate issue was scamming. That stemmed from decentralized finance (DeFi) platforms in which banks and other so-called “middlemen” were removed from the equation with investors buying directly. This put them in jeopardy of scams because of the lack of oversight and protection that comes with a known entity being involved. DeFi investment in crypto spiked by more than 900% in 2021. Still, people were unaware of the dangers.

Hackers have easily broken through to steal money due to a lack of security. For 2021, $7.8 billion in crypto was lost in scams. That was up from $3.2 billion in 2020. Even though new strategies are being put in place and security is being shored up, people are still vulnerable.

As with many new products, the fear of missing out is a primary motivator to invest before ensuring the broker or companies with whom a person is entrusting their money are legal and aboveboard. Even regulatory agencies are struggling to keep up and catch those who are engaging in illegal activity. When an investment is suddenly gone, those who have been victimized must be aware of their options.

Professional advice can forge a strategy after securities fraud and other violations

To pursue fraudster for securities fraud and other violations after an investment goes awry, it is important to have experienced protection. Navigating this complex terrain requires expertise and guidance. This is particularly true with new investment products and shadowy companies and individuals whose main purpose is to take advantage of people who are unsure of what they are getting into. For assistance, it is imperative to act immediately.

This problem will likely continue to expand, so having help is crucial to try and hold those who have committed crypto fraud accountable.