AFRICAN TRADERS LEAST LIKELY TO FALL FOR CRYPTO SCAMS: CHAINALYSIS

In a world where cryptocurrency scams are increasingly prevalent, with losses reaching staggering figures like $9.9 billion in 2025 alone, a surprising trend has emerged from the African continent. Since 2025, the Federal Trade Commission (FTC) has seen a tenfold increase in funds lost in the United States to scammers using crypto ATMs, according to reports from consumers. The FTC found that in just the first six months of 2025, these losses exceeded $65 million with a median reported loss of $10,000 per individual. Crypto ATM scam case studyBlockchain forensics firm Chainalysis, a leading authority in cryptocurrency analysis, has revealed that African crypto traders are significantly less likely to fall victim to scams compared to their counterparts in other regions. Chainalysis stands as one of the most popular blockchain forensics firms out there and has recently concluded that Africa-based crypto traders are less likely to either send or receive, tokensThis unexpected resilience raises intriguing questions about the factors contributing to this phenomenon. ί ί ί Chainalysis ά ό έIs it a greater awareness of online threats, a more cautious approach to investment, or a different cultural perspective on risk? African traders least likely to fall for crypto scams: ChainalysisSource: CointelegraphPublished onThis article dives deep into the Chainalysis report, explores the reasons behind Africa's relative success in avoiding crypto scams, and provides actionable insights for investors worldwide to protect themselves in the ever-evolving landscape of digital finance.

The rise of cryptocurrency has brought with it both immense opportunities and significant risks. Blockchain forensics firm Chainalysis found out that traders who are trading with crypto are not falling into scammers traps anymore.While the potential for high returns attracts investors from all corners of the globe, the anonymity and decentralized nature of crypto also make it a breeding ground for fraud. Blockchain forensics firm Chainalysis has found that crypto traders in Africa are less likely to have sent tokens to, or received tokens from, known scam addresses than traders inUnderstanding the vulnerabilities and implementing effective preventative measures is crucial for anyone participating in the crypto market.Let's examine what makes African traders different and what lessons can be learned from their approach to navigating the complex world of cryptocurrency investments.

Why Are African Crypto Traders More Scam-Savvy?

The Chainalysis report highlights a fascinating disparity in the susceptibility to crypto scams across different regions. The region's traders are highly aware of scams and avoid themWhile the global figures paint a grim picture of widespread fraud, Africa stands out as an exception.So, what are the underlying reasons for this enhanced awareness and resistance to scams among African crypto traders?

Growing Crypto Education and Awareness

One of the key factors contributing to Africa's lower scam vulnerability is the increasing focus on crypto education. 3.8K subscribers in the AllThingsCrypto community. A sub to discuss cryptocurrnecy.As Binance South Africa country manager Tanya Knowles pointed out, education is paramount in mitigating the risks associated with crypto trading. ""We need to get the basics in place before we open it up and say, go wild and start trading,"" Knowles emphasized. The region s traders are highly aware of scams and avoid them. Blockchain forensics firm Chainalysis has found that crypto traders in Africa are less likely to have sent tokens to, or received tokens from, known scam addresses than traders in other regions in the past year.This emphasis on fundamental understanding helps traders differentiate between legitimate opportunities and fraudulent schemes.

Several initiatives are actively promoting crypto literacy across the continent. Bitcoin Head of Bitstamp s European arm becomes latest CEO of global crypto exchangeThese include:

• Online courses and webinars
• Community-led workshops and seminars
• Partnerships between crypto platforms and educational institutions

These efforts aim to equip individuals with the knowledge and skills necessary to make informed investment decisions and identify potential scams.

Skepticism Towards ""Too Good to Be True"" Offers

Another crucial element is a healthy dose of skepticism towards promises of exorbitant returns.African investors appear to be more cautious when presented with opportunities that seem too good to be true.This may stem from a combination of factors, including past experiences with financial scams and a cultural emphasis on prudence and risk management. With this acquisition, Chainalysis can now provide real-time proactive fraud protection for payments and enhanced fraud detection during KYC for exchanges, blockchains, and wallet providers. Alterya has already helped top crypto exchanges decrease fraud by 60%, reduce scam-related disputes, and improve efficiency of manual operations.While there is a significant appetite to buy into the crypto craze, traders seem less willing to believe in easy money than others.

This skepticism acts as a natural defense mechanism, preventing individuals from falling prey to high-yield investment scams and other fraudulent schemes that promise unrealistic profits.

The Role of Community and Shared Experiences

In many African communities, there is a strong emphasis on collective learning and shared experiences.This can translate into a greater awareness of scams through word-of-mouth and the sharing of cautionary tales. High- and low-tech fraud and scams were prolific in 2025, with high-yield investment scams and pig butchering representing the most successful fraud and scam types. We have also observed the increasing use of artificial intelligence (AI) in the fraud and scams space, such as in highly personalized sextortion attacks.When someone falls victim to a scam, their experience is often shared within their network, serving as a warning to others.

Furthermore, the strong social connections within these communities can provide a support system for those who have been scammed, helping them to cope with the emotional and financial impact.

Common Crypto Scams and How to Identify Them

Understanding the different types of crypto scams is essential for protecting your investments. East Asian traders will fall more for scamming with 86% of the illicit crypto ratio. It is difficult to say but the reports noted more awareness of scams that makes difficult to convince African users to try cryptocurrency platforms such as Paxful.While African traders have demonstrated greater resilience to these schemes, it is crucial for everyone to stay vigilant and informed.

High-Yield Investment Scams

These scams promise exceptionally high returns on investments with little or no risk.They often involve complex financial jargon and opaque investment strategies, making it difficult for investors to understand where their money is going.

Red flags:

• Unrealistic promises of high returns
• Pressure to invest quickly
• Lack of transparency about investment strategies
• Unregistered or unlicensed investment platforms

Giveaway Scams

Giveaway scams typically involve social media posts or emails promising free cryptocurrency in exchange for a small initial investment or participation in a promotional event. Revenue in 2025 from crypto scams was at least $9.9 billion, although the figure could rise to a record high of $12.4 billion once more data becomes available, it said.These scams often impersonate well-known figures or organizations in the crypto space.

Red flags:

• Requests for upfront payments to receive a ""free"" reward
• Impersonation of legitimate crypto influencers or companies
• Suspiciously generous offers with no clear explanation
• Poor grammar and spelling errors in promotional materials

Pig Butchering Scams

Pig butchering scams are a more sophisticated form of online fraud that involves building a relationship with the victim over time before convincing them to invest in a fake cryptocurrency scheme.These scams often begin with a seemingly innocent online encounter, followed by gradual manipulation and emotional manipulation.

Red flags:

• Sudden online friendships with strangers
• Requests for personal information
• Pressure to invest in crypto despite a lack of experience
• Emotional manipulation and guilt-tripping

Phishing Attacks

Phishing attacks involve deceptive emails, websites, or messages designed to trick users into revealing their private keys, passwords, or other sensitive information. African investors may have shared the least percentage of investment scams in cryptocurrency which reached $5.9 billion globally last year. But the continent s investors were scammed more through investment and giveaway tricks, signalling the risk of high appetite to buy into the craze.These attacks often impersonate legitimate crypto exchanges, wallets, or service providers.

Red flags:

• Unsolicited emails or messages requesting personal information
• Suspicious links or attachments
• Urgent requests to update account details
• Inconsistencies in website URLs or email addresses

The Impact of AI on Crypto Scams

The rise of artificial intelligence (AI) has introduced a new dimension to the world of crypto scams. African merchants least prone to fall for crypto scams: ChainalysisScammers are increasingly leveraging AI to create more sophisticated and personalized attacks, making it even more challenging for individuals to detect and avoid fraud.

AI-Powered Deepfakes

AI-powered deepfakes can be used to create realistic fake videos or audio recordings of individuals, including prominent figures in the crypto space. Blockchain forensics firm Chainalysis has found that crypto traders in Africa are less likely to have sent tokens to, or received tokens from, known scamThese deepfakes can be used to endorse fraudulent investment schemes or promote fake ICOs, misleading investors into believing they are supporting a legitimate project.

Personalized Phishing Attacks

AI can be used to analyze vast amounts of personal data to create highly personalized phishing attacks. What to do if you have been the victim of a scam. If you fall victim to an online scam, whether involving someone pretending to be from Chainalysis or not, it is best practice to immediately report this to your local law enforcement agency. Chainalysis is unable to provide individual assistance with recovering funds or resolving fraud cases.These attacks are more likely to be successful because they are tailored to the individual's interests, habits, and vulnerabilities.

Automated Scam Bots

AI-powered bots can be used to automate the process of conducting scams.These bots can send out thousands of phishing emails, create fake social media profiles, and engage in deceptive conversations with potential victims.

Protecting Yourself from Crypto Scams: Actionable Tips

While Africa demonstrates resilience, staying vigilant is key.Here are some actionable steps you can take to protect yourself from crypto scams:

1. Do your research: Before investing in any cryptocurrency or project, thoroughly research the team, the technology, and the potential risks involved.
2. Be skeptical of promises: If an investment opportunity sounds too good to be true, it probably is. According to a research report from Chainalysis, blockchain focused forensics company, the probability of African crypto traders sending or receiving tokens from addresses linked to scams is pretty low, in comparison to traders in other regions.Be wary of schemes that promise exceptionally high returns with little or no risk.
3. Use strong passwords and two-factor authentication: Protect your accounts with strong, unique passwords and enable two-factor authentication whenever possible.
4. Be cautious of phishing attacks: Never click on suspicious links or attachments, and never provide your personal information to unsolicited emails or messages.
5. Use reputable crypto exchanges and wallets: Choose reputable crypto exchanges and wallets that have strong security measures in place.
6. Diversify your investments: Don't put all your eggs in one basket. Blockchain forensics firm Chainalysis has found that crypto traders in Africa are less likely to have sent tokens to, or received tokens from, known scam addresses than traders in otherDiversify your investments across different cryptocurrencies and asset classes to reduce your risk.
7. Stay informed: Keep up-to-date on the latest crypto scam trends and security best practices.

What to Do If You've Been Scammed

If you suspect you've been the victim of a crypto scam, it's crucial to act quickly:

• Report the scam to law enforcement: Contact your local police department or the Federal Trade Commission (FTC) to report the scam.
• Notify the crypto exchange or wallet provider: If the scam involved a crypto exchange or wallet provider, notify them immediately so they can take steps to prevent further damage.
• Change your passwords: Change your passwords for all your online accounts, especially those related to cryptocurrency.
• Monitor your credit report: Keep a close eye on your credit report for any signs of identity theft.
• Seek support: Talk to a trusted friend, family member, or mental health professional to help you cope with the emotional and financial impact of the scam.

Chainalysis and the Fight Against Crypto Crime

Companies like Chainalysis play a crucial role in combating crypto crime. Growing crypto education may be another explanation. Binance South Africa country manager Tanya Knowles said in March that the best approach crypto traders in the country can take is to ensure there is education around scams we need to get the basics in place before we open it up and say, go wild and start trading.By providing blockchain analytics and investigative tools, they help law enforcement agencies track down scammers and recover stolen funds. African traders least likely to fall for crypto scams: ChainalysisTheir services can help trace the flow of funds, identify suspicious transactions, and ultimately bring perpetrators to justice.

Luno's Partnership with Chainalysis

The partnership between Luno, a leading cryptocurrency platform with a significant presence in South Africa, and Chainalysis exemplifies the proactive approach needed to protect users.When Luno detected a major scam targeting its South African users, it collaborated with Chainalysis to identify and address the threat, demonstrating a commitment to user safety.

Chainalysis' Acquisition of Alterya

Chainalysis' acquisition of Alterya further strengthens its capabilities in fraud prevention.Alterya's real-time fraud protection and enhanced KYC (Know Your Customer) solutions will help crypto exchanges, blockchains, and wallet providers reduce fraud, minimize scam-related disputes, and improve operational efficiency. Luno is a leading cryptocurrency platform operating in over 40 countries, with an especially heavy presence in South Africa. In 2025, a major scam was targeting South African cryptocurrency users, promising outlandishly large investment returns. Knowing that its users were at risk, Luno decided to take action in partnership with Chainalysis.Alterya has already achieved significant results, helping top crypto exchanges decrease fraud by 60%.

The Future of Crypto Security

As the cryptocurrency market continues to evolve, so too will the tactics of scammers. The Chainalysis report did not include ransomware, a type of malware usually targeting high profile individuals and organizations.Staying one step ahead requires continuous innovation in security measures and a proactive approach to education and awareness.

The Role of Regulation

Clear and effective regulation can play a crucial role in protecting consumers from crypto scams.By establishing clear guidelines and standards for crypto businesses, regulators can help to create a safer and more transparent market.

The Importance of Collaboration

Collaboration between crypto exchanges, law enforcement agencies, and blockchain analytics firms is essential for combating crypto crime.By sharing information and working together, these organizations can more effectively identify and disrupt fraudulent schemes.

Empowering Users with Knowledge

Ultimately, the most effective defense against crypto scams is an informed and empowered user base.By providing individuals with the knowledge and tools they need to protect themselves, we can create a more resilient and secure crypto ecosystem.This includes ongoing education, access to reliable information, and the development of user-friendly security tools.

Conclusion: Lessons from Africa for a Safer Crypto World

The findings of the Chainalysis report offer valuable insights into the factors that contribute to scam vulnerability in the cryptocurrency space.The relative success of African traders in avoiding crypto scams highlights the importance of education, skepticism, and community support.By learning from Africa's experience, and implementing proactive security measures, investors worldwide can protect themselves from falling prey to fraudulent schemes and contribute to a safer and more sustainable crypto ecosystem.Key takeaways include:

• Prioritize Education: Continuous learning about crypto investments and scam tactics is vital.
• Maintain Skepticism: Question promises of unrealistic returns and always verify information.
• Strengthen Community Support: Share experiences and learn from others within your network.
• Utilize Security Tools: Employ strong passwords, two-factor authentication, and reputable platforms.

The fight against crypto crime is an ongoing challenge, but by embracing these principles and working together, we can create a more secure and trustworthy environment for everyone to participate in the exciting world of cryptocurrency.If you have further questions about crypto safety, consult with a financial advisor or explore educational resources from trusted organizations.