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  • Better Business Bureau (BBB) noted that the false promise of “significant” ROI is the main tactic used by scammers.
  • As crypto transactions cannot be reversed in the event of hacking or robbery, the BBB considers them to be risky.

According to a recent report by the Better Business Bureau (BBB), crypto-related scams have been increasing, ranking it second riskiest of 2019 among North Americans. The report says that scams averaged about $3,000 in losses for businesses and charities within Canada and the US. The bureau noted that the false promise of “significant” ROI is the main tactic used by the scammers.

BBB’s 2018 report had revealed that the highest median dollars lost in the year were $900. As crypto transactions cannot be reversed in the event of hacking or robbery, the BBB considers them to be risky. The organization specified that most frauds in the field begin with email contact. The BBB revealed that 31% of the reported crypto-financial losses involved the Chinese exchange C2CX.

Crypto scams were not the only subject of discussion in the report. It cited 9050 instances of fraudulent online shopping sites. To compare, the firm tallied only 273 cases of cryptos scams that took place in the same year.

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