Cryptocurrency scams: analysis and perspectives

Bartoletti M.

;Lande S.;Loddo A.

;Pompianu L.

;Serusi S.

2021-01-01

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Abstract

Since the inception of Bitcoin in 2009, the market of cryptocurrencies has grown beyond the initial expectations, as witnessed by the thousands of tokenised assets available on the market, whose daily trades amount to dozens of USD billions. The pseudonymity features of these cryptocurrencies have attracted the attention of cybercriminals, who exploit them to carry out potentially untraceable scams. The wide range of cryptocurrency-based scams observed over the last ten years has fostered the research on the analysis of their effects, and the development of techniques to counter them. However, doing research in this field requires addressing several challenges: for instance, although a few data sources about cryptocurrency scams are publicly available, they often contain incomplete or misclassified data. Further, there is no standard taxonomy of scams, which leads to ambiguous and incoherent interpretations of their nature. Indeed, the unavailability of reliable datasets makes it difficult to train effective automatic classifiers that can detect and analyse cryptocurrency scams. In this paper, we perform an extensive review of the scientific literature on cryptocurrency scams, which we systematise according to a novel taxonomy. By collecting and homogenising data from different public sources, we build a uniform dataset of thousands of cryptocurrency scams.We devise an automatic tool that recognises scams and classifies them according to our taxonomy.We assess the effectiveness of our tool through standard performance metrics.We also give an in-depth analysis of the classification results, offering several insights into threat types, from their features to their connection with other types. Finally, we provide a set of guidelines that policymakers could follow to improve user protection against cryptocurrency scams.