- Pump-and-Dump schemes dominate crypto markets, driven by 438 manipulative masterminds
- Telegrams Light Communication Fuel to the increase in cryptosipulations
- Advanced tools like Perseus expose crypto -fraudsters but the regulation remains important
Since cyber security faces challenges with ordinary internet fraud such as phishing, advanced fee fraud and false lotteries, cryptocurrency pump-and-dump schemes have emerged as an essential problem.
A recent study by researchers at University College London revealed only 438 Masterminds is responsible for most of the pump-and-dump crypto schemes around the world.
These masterminds manipulate crypto crashes by blowing prices through misleading hype, selling them once enough buyers are lured, collectively account for $ 3.2 trillion in artificial trade and earns $ 250 million annually. According to Google, such “Cloaking” winds are the most harmful scams around.
Telegram is the preferred platform for manipulation
The researchers found popular encrypted messaging -app telegram is the primary tool used by Crypto Coin Masterminds to spread false information, with manipulators using channels and chat to create artificial demand for coins.
“On the app, chats are used to communicate between potential buyers and sellers,” the researchers note.
With light communication and limited regulation, manipulators convince others of buying into hype and leaving many victims unaware of the risks and destroyed by the schemes.
As the research team pointed out, the simplicity of performing these scams should “be worrying about those trying to make money on crypto -conset.”
To track these schemes, researchers developed Perseus, a tool capable of analyzing the coordination effort behind these manipulations.
Similar to AI-driven scam detectors such as the one developed by McAfee, which stops scammers before they can reach potential victims, Perseus helps identify Masterminds behind scams and measure their influence.
Perseus consists of three components: a real-time retrieval, a temporal attributed graph generator and a mastermind detector. These technologies work together to reveal and track the most important figures that orchestrate these scams.
The researchers suggest that tools like Perseus, along with other Scam Detection Technologies could be crucial to recognizing harmful schemes within the largely unregulated crypto area.
“At some point, some form of regulation will be necessary to keep the system going,” they concluded.
As Cryptocurrencies grow in popularity, the incidence of fraud is raising concern about market stability, with the lack of rules that leave investors vulnerable to manipulations.
Via Techxplore
