Risk vs Reality

A Leading Driver of Digital Anxiety

What people perceive as dangerous online often doesn’t align with what is actually risky. Our consumer market research shows that unfamiliar online activities—or those amplified by media attention, like cryptocurrency (crypto) trading—tend to trigger the most fear. But why is that, and are those fears truly justified?

As highlighted in the F‑Secure Digital Perception–Reality Gap Report, there’s a stark disconnect between perceived threats and real cyber risks. Familiar, everyday activities such as messaging via SMS or WhatsApp, making voice calls, or banking online are among the most common entry points for cyber crime, yet they provoke the least concern among consumers.

Meanwhile, crypto trading is widely seen as high-risk—even though the actual threat, in terms of likelihood and reach, is relatively lower. The potential for monetary loss, however, is significant and multifaceted: investing is inherently risky, and individuals can lose money either through scams or legitimate but poor investments.

Illicit Crypto Activity is Worth Billions

In addition to legitimate trading of cryptocurrencies, the financial impact of illicit crypto activity is substantial and continues to grow.

Chainalysis estimates that illicit cryptocurrency addresses—used for a range of illegal activities, from ransomware to the trade of illicit goods—received $40.9 billion in 2024. This figure is expected to rise as more addresses are identified, and historical activity is taken into account.

Since 2020, annual estimates of illicit crypto activity have increased by an average of 25%. If that trend holds, the true total for 2024 could approach $51 billion.

According to the Chainalysis 2025 Crypto Crime Report, this rise is likely driven by a growing number of illicit organizations and crime networks using cryptocurrency with increasing levels of professionalization and operational complexity.

The Role of Cryptocurrency in Cyber Crime

To fully grasp the dynamics of crypto-related cyber crime, it’s important to first understand how cryptocurrency works and why its unique characteristics have made it an appealing tool for fraud and financial exploitation.

How Cryptocurrency Works

Cryptocurrency is a form of digital money that can be bought with traditional (fiat) currencies like dollars or euros. Unlike fiat currencies, it operates outside the control of central banks and isn’t backed by physical assets or regulatory institutions.

Most cryptocurrencies run on decentralized blockchains that publicly record all transactions. Crucially, crypto transactions are irreversible, unlike bank transfers which can often be reversed in cases of fraud. While primarily used as a volatile investment, some retailers—both online and in‑store—now accept crypto as payment.

Why Scammers Use Cryptocurrency

Despite their public ledgers, cryptocurrencies offer more anonymity than traditional financial systems. Although every transaction is visible on the blockchain, identifying the real person behind a crypto wallet can be difficult, especially if they use platforms that don’t require strong identity verification or if users have registered accounts with fake information. Crypto is also easy to transfer across borders without the oversight of banks.

Unlike traditional payments, and depending on the currency and mechanism used for transfer, crypto transactions often lack built-in fraud protections. Once cryptocurrency is sent, it’s impossible to recover. While there have been rare cases of law enforcement recovering stolen crypto assets, so‑called “crypto recovery services” are scams themselves—often preying on people who have already been defrauded.

Bitcoin and the Rise of Memecoins

Bitcoin remains the most well-known cryptocurrency, but it’s just one of thousands, each with its own value proposition and underlying mechanisms.

In recent years, memecoins—tokens inspired by internet trends or memes—have surged in popularity, with examples like Dogecoin and $TRUMP. Their hype-driven nature makes them especially vulnerable to scams such as pump-and-dump schemes, where bad actors artificially inflate a coin’s price before selling off their holdings. The price then crashes, leaving others with worthless tokens.

This wave of speculative crypto has opened the door to scams that prey on emotional triggers, social trust, and user inexperience. Whether through financial manipulation or social engineering, the goal is the same: to separate victims from their money.

Staying Secure While Investing in Cryptocurrency

As crypto continues to attract new investors, education remains the strongest line of defense. The following guidance outlines key practices to help users avoid falling victim to scams.

How to Vet an Investment Opportunity

• Research the investment, platform, and individuals involved. Search for the name of the cryptocurrency online and look for scam alerts, negative reviews, or user complaints—both before investing and on an ongoing basis.

• Exercise caution with memecoins, especially in their early stages. Investigate who created the coin, whether it has undergone audits, and how it’s being promoted. Scam memecoins often rely on hype on social media platforms.

• Users should only invest what they can afford to lose. Cryptocurrency is inherently volatile, and lesser-known coins carry an even greater risk. There are no guaranteed returns.

Common Warning Signs of a Crypto Scam

• Unsolicited contact promising high returns. This is especially concerning when it targets individuals through online dating platforms or unexpected social media interactions.

• Celebrity-endorsed ads on social media. These are often AI-generated and designed to lend false credibility to fraudulent crypto schemes, making them appear legitimate to users.

• Offers to recover lost cryptocurrency—for a fee. Scammers frequently re‑target victims by posing as recovery services, further exploiting individuals who have already suffered losses.

• Pressure, threats, or extortion demands. Any attempt to coerce users into sending cryptocurrency, especially under duress, is a serious red flag.