Chainalysis Reveals How Scammers are Adapting in a Bear Market to Stay Ahead

The crypto winter has been a harsh reality for many investors in the cryptocurrency market, but it seems that scammers are not immune to its effects either.

As the bear market takes hold, scam revenue has dropped by a staggering 46%, according to recent data from blockchain analysis firm Chainalysis. Despite this, however, scammers are still finding ways to adapt and thrive in these difficult times.

During a recent webinar focused on crypto crimes that affect consumers, Eric Jardine, cybercrimes research lead at Chainalysis, shed light on how scammers shift their tactics as market conditions change. He noted that not all scams behave in the same way in the context of the bear market and that scammers are constantly adapting their strategies to maximize profits.

Jardine pointed out that the collapse of Terra in 2022 made crypto investors wary of investing, leading scammers to turn to other strategies such as giveaway scams and romance scams that play on greed and emotional manipulation. He explained that scammers are not simply following a script and can change their tactics depending on the market situation.

According to data presented by Jardine, as soon as investment scams stop being effective, romance and giveaway scams rise, suggesting that scammers are always looking for new ways to exploit market conditions. Jardine’s research shows that scammers are not static and are constantly adapting their strategies to maximize their profits.