The MEXC crypto exchange has identified a 200% quarter-over-quarter increase in fraudulent activities during the first quarter of 2025. Over 80,000 fraud attempts were recorded, originating primarily from fraud syndicates across India, Indonesia, and the Commonwealth of Independent States (CIS) region. These attempts involve schemes such as market manipulation, wash trading, and the use of automated trading bots which exploit inexperienced users through social engineering tactics.
Tracy Jin, COO of MEXC, emphasized that the rise in fraud is predominantly due to coordinated social engineering scams targeting new and uneducated crypto investors, including so-called "educational" trading groups that mislead users. The exchange's security team has intensified monitoring and countermeasures in response to the surge in malicious activity.
The trend underscores significant vulnerabilities within the crypto market, especially for novice users who lack the necessary education to recognize common scams. This increase in fraud has raised concerns about market trust and emphasizes the urgent need for enhanced cybersecurity, user education, and regulatory vigilance to protect the growing crypto user base globally.