Cardano launches anti-scam task force to fight fraudsters

The founder of Cardano, Charles Hoskinson, has announced the formation of an internal action force to counter fraudsters. This comes from a report by fraud prevention firm Bolster, which showed that cryptocurrency fraud nearly doubled in 2020.

“One of the things we’ve been thinking about is setting up a special facility in the Cardano ecosystem that will do nothing but develop tools that people can use to report fraud and spread the knowledge that a fraud has occurred.”

The Cardano Anti-Scam Task Force grabs the first case

Last month, a frustrated Hoskinson hosted a live stream warning the Cardano community about giveaway scams. He repeated the point he had made many times that he or Cardano would ever give away ADA.

“If you fall for it, you will lose your ADA, these are criminals, these are scammers, these are people who are trying to steal from you. Use common sense. You don’t get anything for free. You don’t get anything for nothing. “

Cardano is now taking an active role in fighting the fraudsters with the newly formed Anti-Scam Task Force. Not only is it tasked with reporting and promoting fraud, but Hoskinson spoke about an investigative element into their operations.

“… conduct some targeted research on businesses that have entered the Cardano space that we believe are fraudulent.”

Without going into details, Hoskinson said after complaints from community members that the task force was investigating a fund suspected of fraud. Initial results suggest that the fund in question may be a fraud. However, at this point he did not disclose the name of the fund.

“We have started an investigation and preliminary results suggest that this fund may indeed be a scam. In two weeks we will publish our first results of this internal working group. “

Crypto scams are set to get worse in 2021

Scammers are pouring into crypto as the markets continue to boom. Research conducted by Bolster confirms that cryptocurrency fraud is on the rise. The company points out that this is one of the major barriers to mainstream success.

Bolster co-founder and CTO Shashi Prakash said crypto fraud is the fastest growing category of fraud. He warned that this was just the beginning of a “new wave of digital theft campaigns”.

We continue to see scammers being opportunistic and developing campaigns that focus on real-time trends when people are probably not on guard because it’s so new. “

Analyzing 300 million websites, Bolster found more than 400,000 related to crypto scams in the past year. The company is forecasting a 75% increase this year.

Other key findings indicate that fake prizes, giveaways, or sweepstakes were the most prolific type of scam, with Bitcoin, Chainlink, and Ethereum being the three most commonly targeted tokens.

The Cardano Anti-Scam Task Force is a step in the right direction. However, as Hoskinson pointed out, this is not a substitute for common sense.

Source: ADAUSD on TradingView.com

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