PaymentsJournal
No Result
View All Result
SIGN UP
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
PaymentsJournal
  • Commercial
  • Credit
  • Debit
  • Digital Assets & Crypto
  • Digital Banking
  • Emerging Payments
  • Fraud & Security
  • Merchant
  • Prepaid
No Result
View All Result
PaymentsJournal
No Result
View All Result

Rug Pulls Were the Most Common Crypto Attack of 2023

By Connie Diaz De Teran
February 14, 2024
in Analysts Coverage, Digital Assets & Crypto, Digital Currency, Fraud & Security
0
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Crypto Fraud

Rug pulls dominated the landscape of crypto attacks in Q3 2023, making up 65% of all incidents within the crypto ecosystem.

According to a report from Hacken, there were 78 documented cases of rug pull attacks, resulting in the theft of nearly $50 million. These incidents were particularly prevalent due to the ease with which scammers could generate fraudulent tokens on a large scale.

A common crypto scam, a rug pull occurs when a creator or developer promotes a new cryptocurrency or NFT as a lucrative investment opportunity. As investors pour money into this digital asset, the creator suddenly disappears, along with investors’ funds and rendering the  cryptocurrency worthless. The decentralized nature of the blockchain makes it difficult to identify these bad actors, as their identities are often concealed.

In light of these risks, Hacken recommends choosing projects that feature community-led governance, renounced administration controls, and developers with verified identities.

Crypto Scams Are Increasing

Scams continue to plague the crypto space, presenting an ongoing challenge without a clear resolution in sight. Amid significant price fluctuations and regulatory uncertainty, the emergence of rug pulls exacerbates the struggle for crypto to solidify its position as a stable, low-risk digital currency.

The FTX collapse in November 2022 contributed to a domino effect reaction, particularly as Visa and Mastercard pulled the plug on crypto-adjacent products. Although it was a temporary decision, a spokesperson for Visa made it clear that cryptocurrency has yet to prove itself before it can secure a permanent place as a mainstream payment method.

Last November, Lloyds Bank issued a warning to its customers, alerting them to the growing number of cryptocurrency scams. In fact, 66% of crypto scams were initiated through popular social media platforms such as Facebook and Instagram. Fraudulent tactics included direct messaging, fake ads, and celebrity endorsements. These types of scams surpassed other scams, including romance and purchase scams.

Liz Ziegler, Fraud Prevention Director at Lloyd’s Bank called crypto a “risky asset class and remains largely unregulated.” She stated that if things were to go awry, there would be no recourse.

0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on LinkedIn
Tags: BlockchaincryptoDigital CurrencyFraudFTXNFTScam

    Get the Latest News and Insights Delivered Daily

    Subscribe to the PaymentsJournal Newsletter for exclusive insight and data from Javelin Strategy & Research analysts and industry professionals.

    Must Reads

    metal cards

    Leveraging Metal Cards to Attract High-Value Customers

    December 9, 2025
    fraud as a service

    Keeping Up with the Most Dangerous Fraud Trends of 2026

    December 8, 2025
    open banking

    Open Banking Has Begun to Intrude on Banks’ Customer Relationships

    December 5, 2025
    conversational payments

    Conversational Payments: The Next Big Shift in Financial Services  

    December 4, 2025
    embedded finance

    Inside the Embedded Finance Shift Transforming SMB Software

    December 3, 2025
    metal cards

    Metal Card Magnitude: How a Premium Touch Can Enthrall High-Value Customers

    December 2, 2025
    digital gift cards

    How Nonprofits Can Leverage Digital Gift Cards to Help Those in Need

    December 1, 2025
    stored-value prepaid

    How Stored-Value Accounts Are the Next Iteration of Prepaid Payments

    November 26, 2025

    Linkedin-in X-twitter
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Commercial
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Digital Banking
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter
    • About Us
    • Advertise With Us
    • Sign Up for Our Newsletter

    ©2024 PaymentsJournal.com |  Terms of Use | Privacy Policy

    • Commercial Payments
    • Credit
    • Debit
    • Digital Assets & Crypto
    • Emerging Payments
    • Fraud & Security
    • Merchant
    • Prepaid
    No Result
    View All Result