SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years
A Lot Of Urban Legends Are Spread About Criminals Using Crypto!
However, as with all things, the truth is important. Here are the 4 main myths!
Here is the reality from our friends at Europol!
Cryptocurrencies are a technical and financial innovation that offers major potential for the global economy. At the same time, they are being used for criminal purposes such as money laundering, fraud, and the online trade of illicit goods and services. The ways criminals use cryptocurrencies are evolving, and it is spreading to all forms of serious and organized crime.
Myth #1 – Cryptocurrencies have become the payment method of choice for criminals
The use of cryptocurrency as part of criminal schemes is increasing, and the uptake of this payment medium is accelerating. However, the overall number and value of cryptocurrency transactions related to criminal activities still represent only a limited share of the criminal economy when compared to cash and other forms of transactions. A range of constraints are related to the use of cryptocurrencies, with high volatility a major factor in criminals’ reluctance to use cryptocurrencies for long-term investments.
Myth #2 – The criminal use of cryptocurrency is limited to cybercrime
The criminal use of cryptocurrency is no longer primarily confined to cybercrime activities, but now relates to all types of crime that require the transmission of monetary value, including fraud and drug trafficking. However, the scale and share of the illicit use of cryptocurrencies as part of criminal activities is difficult to estimate. Criminal networks involved in serious and organized crime also continue to rely on traditional fiat money and transactions to a large degree, in addition to emerging value transfer opportunities.
Myth #3 – Illicit funds flow straight from wallet to wallet
Criminals have become more sophisticated in their use of cryptocurrencies. The illicit funds increasingly travel through a multi-step process involving financial entities, many of which are novel and are not yet part of standardized, regulated financial and payment markets. Obfuscation methods and other countermeasures continue to be developed and used by criminals.
Myth #4 – Cryptocurrencies provide anonymity
Cryptocurrencies are not anonymous. Every single transaction is logged onto the blockchain, which is a ledger of all transactions distributed to all users in the network. Most blockchains are publicly available, making transactions traceable. This gives law enforcement access to substantially more information than a case involving cash. While privacy coins and a number of services and techniques may hinder law enforcement investigations, it does by no means stop law enforcement from finding out who is hiding behind the crime.
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A Note About Labeling!
We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!
A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
Statement About Victim Blaming
Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.
These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.
Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org
Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.
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