One of the recurring issues facing the crypto industry is the prevalence of scams targeting digital asset users. From phishing schemes to fake crypto investments, millions of dollars have been stolen by crypto scams, which also tarnish the industry’s reputation.
Industry experts have unanimously agreed that more in-depth education of consumers about these scams and how they work is a major way to combat them. However, according to a new report from the University of Queensland, the current level of education regarding crypto scams leaves a lot to be desired.
The State of Crypto Scam Education
The study, which sought to determine the level of education regarding crypto scams, identified two groups of people that are most at risk. These were financially literate University-educated investors and those from socio-economically disadvantaged backgrounds. This highlights how these scams do not discriminate in terms of who they will target.
We’ve seen both everyday social media users and celebrities fall victim to crypto scams in the past and the criminals seem to adapt their methods with each new industry development. Email phishing schemes remain popular but we are also seeing celebrity impersonation and cryptojacking as digital assets become more popular.
Cryptocurrency has seen a lot of diversity in terms of use cases in recent years. Take the growing use of tokens in Bitcoin casino sites. More and more options are available for people to gamble with crypto and possibly make a profit from their efforts. From major tokens like Bitcoin to more obscure ones, crypto betting sites cater to all tastes while allowing users more privacy and control over their tokens.
But with these growing use cases has come a need for quality information, which the study notes as an issue. It was also noted that an existing education gap regarding these scams only makes things worse.
The Danger With Social Media
Respondents in the study indicated that they learned about cryptocurrency through social media, which the study says could be harmful.
Many crypto scams are perpetuated through social media, including hacking celebrity accounts and spreading dodgy links. As such, crypto education being gotten through social media makes users especially vulnerable. There is no way to vet and ensure that the information being spread is correct and this is especially troubling for a country with a high crypto adoption rate like Australia.
The solution proposed is independent sources that will put out the correct information that protects users.
“Our findings suggest that online financial education from trusted independent sources is urgently needed to help combat scams and to keep Australians and their crypto assets safe,” the study says.
Several regulatory bodies have put out statements in the past warning about new crypto scams and giving general guidelines but much of the proliferation of education has come from the industry itself. While this has sufficed for a time, the study suggests that proper and vetted channels need to be set up independent of any crypto organization to protect the public.
