The Scammer’s Playbook: Unpacking patterns and psychological techniques and tactics used by scammers in cryptocurrency fraud

• In Event: New Contexts, New Risk Factors: Examining Risks for Victimization

Abstract

This study investigates cryptocurrency-related scams using data from two state scam trackers, focusing on scam types, financial losses, scammers' methods of contact and psychological techniques and tactics. Initial findings reveal that cryptocurrency scams share similarities with other online financial scams but maintain unique characteristics tied to digital platforms and cryptocurrencies. The most prevalent scam types for crypto scams are fraudulent trading platforms and pig butchering scams, which account for nearly 70% of cases and result in high losses. Victims, predominantly male, are contacted primarily via social media (25.4%) or online messaging platforms (28.5%). Scammers use a variety of identities or titles, and consistently use the same psychological tactics and techniques to build trust and encourage participation in fraudulent crypto purchasing. Scams initiated through personal connections, particularly romantic or familial identities, lead to the largest financial losses. Overall, these results suggest anonymity and digital communication make crypto scams more successful that traditional scams. Our findings can assist in educating the public and improving fraud prevention. Future inquires into this area of research should focus on understanding how new technologies are facilitating new and more costly financial criminal opportunities.

Authors

• Brandon C. Dulisse, University of Tampa

• Chivon Fitch, University of Tampa