Welcome to the SCARS INSTITUTE Journal of Scam Psychology

A Journal of Applied Scam, Fraud, and Cybercrime Psychology – and Allied Sciences

A dedicated site for psychology, victimology, criminology, applied sociology and anthropology, and allied sciences, published by the SCARS INSTITUTE™ – Society of Citizens Against Relationship Scams Inc.

An Analysis of the MTI Crypto Investment Scam: User Case

Principal Category: Criminology

Authors: Johnny Botha, Thor Pederson, Louise Leenen
June 2023
DOI LINK: 10.34190/eccws.22.1.1441
LICENSE:  CC BY-NC-ND 4.0
Source: (PDF) An Analysis of the MTI Crypto Investment Scam: User Case (researchgate.net)

Abstract:

Since the start of the Covid-19 pandemic, blockchain and cryptocurrency adoption has increased significantly. The adoption rate of blockchain-based technologies has surpassed the Internet adoption rate in the 90s and early 2000s. As this industry has grown significantly, so too has the instances of crypto scams. Numerous cryptocurrency scams exist to exploit users. The generally limited understanding of how cryptocurrencies operate has increased the possible number of scams, relying on people’s misplaced sense of trust and desire for making money quickly and easily. As such, investment scams have also been growing in popularity. Mirror Trading International (MTI) has been named South Africa’s biggest crypto scam in 2020, resulting in losses of $1.7 billion. It is also one of the largest reported international crypto investment scams. This paper focuses on a specific aspect of the MTI scam; an analysis on the fund movements on the blockchain from the perpetrators and members who benefited the most from the scam. The authors used various Open-Source Intelligence (OSINT) tools, alongside QLUE, as well as news articles and blockchain explorers. These tools and techniques are used to follow the money-trail on the blockchain, in search of possible mistakes made by the perpetrator. This could include instances where some personal information might have been leaked. With such disclosed personal information, OSINT tools and investigative techniques can be used to identify the criminals. Due to the CEO of MTI having been arrested, and the case currently being dealt with in the court of law in South Africa, this paper also presents investigative processes that could be followed. Thus, the focus of this paper is to follow the money and consequently propose a process for an investigator to investigate crypto crimes and scams on the blockchain. As the adoption of blockchain technologies continues to increase at unprecedented rates, it is imperative to produce investigative toolkits and use cases to help reduce time spent trying to catch bad actors within the generally anonymous realm of cryptocurrencies.

Research Study/Article/Document

https://scampsychology.org/wp-content/uploads/2023/07/An_Analysis_of_the_MTI_Crypto_Investment_Scam_User-1.pdf

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Published On: July 2nd, 2023Last Updated: July 2nd, 2023Categories: • PDF, • CRIMINOLOGY, • RESEARCH STUDY, 20230 CommentsTags: , , , 388 words1.9 min readTotal Views: 647Daily Views: 1

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A Note About Labeling!

We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!

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Some of our articles discuss various aspects of victims. This is both about better understanding victims (the science of victimology) and their behaviors and psychology. This helps us to educate victims/survivors about why these crimes happened and to not blame themselves, better develop recovery programs, and to help victims avoid scams in the future. At times this may sound like blaming the victim, but it does not blame scam victims, we are simply explaining the hows and whys of the experience victims have.

These articles, about the Psychology of Scams or Victim Psychology – meaning that all humans have psychological or cognitive characteristics in common that can either be exploited or work against us – help us all to understand the unique challenges victims face before, during, and after scams, fraud, or cybercrimes. These sometimes talk about some of the vulnerabilities the scammers exploit. Victims rarely have control of them or are even aware of them, until something like a scam happens and then they can learn how their mind works and how to overcome these mechanisms.

Articles like these help victims and others understand these processes and how to help prevent them from being exploited again or to help them recover more easily by understanding their post-scam behaviors. Learn more about the Psychology of Scams at www.ScamPsychology.org

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