Economic Consequences of Crypto-Asset Fraud in the Context of Digital Transformation: Analysis of Costs and the Potential of Preventive Technologies
Andrii Semenog, Maksym Perekrestov, Dmytro Dmitrishyn, Maksym Bohachenko · Economic sustainability and business practices · 2025
This article examines the economic consequences of cryptocurrency fraud within the framework of digital transformation, elucidating its impact on financial systems, primary manifestations, and the potential for counteraction through preventive technologies. It posits that cryptocurrencies, as decentralised digital assets, play a dual role: they foster innovative economic growth while simultaneously serving as a hub for financial crime. The study highlights that the surge in transactional activity is accompanied by the proliferation of fraudulent practices such as fake Initial Coin Offerings, Ponzi schemes, hacking attacks, and phishing, which inflict substantial losses on investors, erode market confidence, and generate macroeconomic risks. The economic repercussions of cryptocurrency fraud manifest across multiple dimensions: direct losses from asset theft, reputational shocks to markets, and governmental expenditures on investigations and regulation. Technological advancements play an ambivalent role, facilitating criminal schemes through tools like mixers and automated attacks while offering solutions for their mitigation, such as blockchain analytics and Know Your Customer systems. Alongside challenges, digital transformation presents new avenues for combating fraud and bolstering financial systems. Overall, the study underscores that cryptocurrency fraud constitutes a systemic issue necessitating a comprehensive approach to minimise its economic burden. Integrating digital technologies into anti-fraud measures curtails losses and transforms challenges into opportunities for enhancing financial security. The author contributes to resolving this issue by systematically analysing cryptocurrency fraud’s multifaceted economic impacts and evaluating preventive technologies’ efficacy, offering a novel framework that integrates direct and indirect costs with technological solutions. The scientific novelty lies in the comprehensive assessment of societal costs, such as economic inequality and reduced investment potential, previously underexplored in the literature. Practically, the results provide actionable insights for stakeholders to strengthen financial systems through targeted technological and regulatory interventions. Key conclusions emphasise that a synergistic approach combining innovation and coordination can transform the challenges of fraud into opportunities for sustainable growth in the digital economy.