Cryptocurrency fraud in Nigeria is exclusively committed by young men, with 100% of convicted fraudsters being male and nearly two-thirds under the age of 30, according to a new study from the University of Surrey.
The United States is firmly in the sights of these criminals, with 55% of all cases involving American targets.
The study, conducted in collaboration with Nigeria’s Economic and Financial Crimes Commission (EFCC), analysed case files of convicted cryptocurrency fraudsters in Nigeria.
It paints a disturbing picture of a new, tech-savvy criminal demographic conducting sophisticated crimes that exploit digital currencies to defraud victims across borders.
These activities pose significant challenges to traditional law enforcement.
Dr Suleman Lazarus, one of the lead authors of the study and cybercrime expert at the University of Surrey, said: “Our research reveals a disturbing surge in cryptocurrency fraud. We’re observing a rising generation of young, tech-savvy male offenders who adeptly exploit digital platforms and cryptocurrencies to perpetrate high-stakes fraud.
“The fact that they predominantly target victims in the United States spotlights the transnational nature of this threat and underlines the urgent need for international collaboration to curb these crimes.”
The research team reviewed individual case files of convicted cryptocurrency fraudsters to gain insights into the methods, motivations, and financial gains of these digital criminals.
The study found that fraudsters used a variety of popular social media and communication platforms to perpetrate their schemes, with Facebook (27%), Gmail (22%), and Instagram (14%) being the most common.
Perhaps most alarmingly, the study revealed that Bitcoin was the preferred method for 46% of cryptocurrency fraud cases.
This preference for Bitcoin highlights the challenges law enforcement faces in tracking and recovering stolen funds due to the anonymity provided by cryptocurrencies.
The financial gains from these fraudulent activities varied significantly, ranging from $1,000 to as much as $475,000 in cash and even 1,200 Bitcoin (approximately $81.96 million). These figures underscore the lucrative nature of cryptocurrency fraud and its potential to inflict substantial financial harm on victims.
Interestingly, the study also revealed that only a quarter of convicted fraudsters held a degree, challenging the common perception that sophisticated digital crimes require a high level of technical expertise.
Dr Lazarus continued: “As cryptocurrencies continue to gain popularity, our research serves as a wake-up call for law enforcement agencies, policymakers, and the general public to remain vigilant against the evolving threats in the digital financial landscape.”
Risk Warning: Cryptocurrency is a unregulated virtual notoriously volatile instrument with a high level of risk.
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