Cryptocurrencies: Boons and curses for fraud prevention

Fraud follows the money, and as finance evolves so too will fraud. We provide an overview of cryptocurrencies and introduce the concept of crypto-enabled and crypto-dependent frauds to examine over twenty-five different types of cryptocurrency scams. The differences between cryptocurrency fraud and traditional fraud are highlighted, showing how cryptocurrencies provide both boons and curses for fraud prevention. Four key areas important for detection and prevention emerged, outlining a path for future research: data integrity and tooling, protocol design, education, and regulation. While cryptocurrencies offer new opportunities for fraud, the unique transparency they provide could also be used to mitigate it.