CRYPTOCURRENCY FRAUD: A STUDY ON THE CHARACTERISTICS OF CRIMINALS WHO ARE USING FAKE PROFILES ON A SOCIAL MEDIA PLATFORM TO PERSUADE INDIVIDUALS TO INVEST INTO CRYPTOCURRENCY

Abstract

The interest in cryptocurrency investing is constantly growing. Cryptocurrency may be the currency of the future, but it is also the heaven for con artists to scam investors from their money. Crypto transactions are irreversible. If the underlying blockchain technology has privacy or mixer capabilities it can be virtually untraceable, which creates a new avenue for criminals to scam victims with ease. Social media impersonation is one of the top scams currently performed by criminals. This study presents an example of a social media impersonation scam and the characteristics of the scam. The qualitative data is gathered from communication between the scammer and the potential victim. This study also indicates that cryptocurrency awareness should be included in cyber security training curriculums.