A new report by Blockchain Analytics firm, Chainalysis has revealed Africa as the least favorite choice destination for cryptocurrency scams.
The report however revealed that investors in the region, particularly in South Africa, Kenya, and Nigeria lost the most funds through investment and giveaway tricks.
According to the report, Giveaway scams — where swindlers trick users into sending them their crypto assets promising to send them more in return — were particularly more prominent in Kenya and Nigeria, which are also leading in crypto adoption on the continent.
The report said that South Africans mostly fell victim to investment scams — where the fraudsters promote a non-existent investment company promising huge returns — occasioned by little and misinformation in the sector.
Overall, the report said that over $5.9 billion has been lost by investors globally
Chainalysis says the locations of those who fell victim to crypto scams last year were “likely due to the location of the scammers themselves, as this will impact their ability to pitch victims based on their shared language and cultural context.”
“But the geographic trends in scamming also match the geographic trends we have seen in the wider cryptocurrency ecosystem,” Chainalysis said.