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A new report by Chainlysis dives deep into the ever-evolving landscape of cryptocurrency fraud, highlighting a stark shift in tactics by scammers. While the total sum of stolen cryptocurrency has seen a decline, the average scam size has risen, and new modalities of deception are emerging.

According to the report, the first quarter of 2023 saw a 66% decrease in the cryptocurrency stolen by fraudsters compared to the previous quarter. This shift coincides with a 40% increase in the average scam size.

The report attributes this change to the increasing sophistication of blockchain analysis, which is making it more difficult for smaller scams to operate undetected. As a result, smaller scams are being shut down more effectively, while larger scams, capable of evading detection for longer periods, are able to siphon off larger sums before being shut down.

The report further notes a change in the primary targets of scams. Previously, a majority of scams targeted English-speaking audiences, specifically in the U.S. and the U.K., with 73% of scams in Q4 2022 written in English. However, in Q1 2023, only 46% of scams used English, indicating a broadening scope of operations.

The shift in language preference is attributed to the increasing efforts of social media platforms, especially Facebook and Instagram, to shut down scams operating in English-speaking communities. In response, scammers are pivoting to other languages and audiences.

The report also highlights a decrease in the use of phishing links and QR codes, which might be due to heightened awareness among users. Instead, scammers are employing more sophisticated techniques like impersonating cryptocurrency exchanges or creating fake initial coin offerings (ICOs).

Despite the decrease in the number of scams, the reported sums stolen are still staggering. In Q1 2023, an estimated $1.3 billion was stolen by scammers, a figure that dwarfs the total funds stolen by ransomware in the same period, which Chainlysis researchers place at $109 million.

The report concludes by emphasizing the persistent threat of cryptocurrency scams and the need for users to remain vigilant. As scammers adapt and innovate, users must do the same by staying informed about the latest scam trends and best practices for online safety.