Crypto Fraud On The Rise As 36% of U.S. Adults Engage In Digital Assets
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The use of cryptocurrencies in the United States has greatly appreciated over the years, but the issues of increasing distrust and fraud has been of much concerns. A new research from Sumsub, a world verification and anti-fraud firm, revealed that not less than 33% of Americans have either been defrauded or know someone that has been affected by cryptocurrency scams.
Sumsub’s analysis explained that 36% of U.S. adults have either used or interacted with cryptocurrency in the last 12 months. Younger subscribers are leading this move even though they also face greater exposure to fraud. Nearly half of those born between the mid-1990s and early 2010s have in one way of the other experienced fraud.
Survey Reveals Rising Threat of AI-Generated Identity Fraud
The chiefs of schemes include Ponzi schemes and fake giveaways. Impersonation, fake airdrops, phishing, wallet draining, and rug pulls were also mentioned frequently.
The use of Synthetic identity fraud has also been cited. It involves using AI-generated falsified documents. This has affected about 35% of the respondents.
Sumsub’s inner information reveals that fake identity document fraud in the U.S has grown by more than 300% in the first quarter of this year compared to the same time last year. Document-related fraud has risen by over 700% during this same period.
Among the persons affected by crypto or online scams, the average loss evaluated from the most terrible incident was about 3,300 dollars.
When asked who should bear the responsibility of recovering the funds, 33% of respondents said platforms should bear the cost, while another 20% said individuals who had the loss should absorb their losses themselves.
Despite the improvement in crypto participation, trust in online monetary platforms has remained on a low pedestal in comparison to conventional financial institutions.
Victims of Fraud Back Stricter Rules To Curb Crypto Scams
A large number of the respondents agreed that strict regulatory measures should be employed. Three people out of every five spoke in favour of government authorities towards crypto platforms. This includes proposed rules such as the Clarity for Payment Stablecoins Act and the GENIUS Act. The aim of both bills is to build a transparent system for stablecoin issuance and also to improve the protection of customers against fraud.
People who have experienced scams are in full support of this movement. Frauds that took place with the aid of artificial intelligence have become popular, drawing the attention of the public.
About 69% of interviewees supported that companies developing generative AI should be held responsible for the misuse of their technology to commit fraudulent activities. Only about 26% of interviewees showed confidence in crypto services, while another 54% said they don’t trust them at all. This survey of 2,000 aged Americans was carried out during the first week of September this year.
