The largest cyber risk claims – for money defrauded in cryptocurrency schemes

BTA Baltic Insurance Company AAS (hereinafter – BTA) has paid out 39,500 euros in claims for losses caused by cyber risks to private individuals this year and last year. The most expensive claims were for money defrauded in cryptocurrency scams, with the largest of these reaching the sum insured – 5,000 euros. According to Ivo Danče, Director of the Claims Department at BTA, the amounts defrauded vary widely, but people are increasingly opting for cyber risk insurance to protect themselves against losses of at least a certain amount. 

Various fraud schemes promising easy and quick profits are becoming increasingly widespread online – data from the State Police also shows that investment fraud remains one of the most common types of fraud in Latvia, and in 2025, fraudsters defrauded residents of more than 23.7 million euros in total. Meanwhile, information compiled by the Finance Industry Association from financial institutions reveals that, in the first six months of this year, fraudsters have already embezzled more than 7 million euros. 

39,500 euros paid out in cyber risk claims; the largest payout being 5,000 euros 

Since the introduction of cyber risk insurance in May 2025, BTA has paid out more than 39,500 euros in claims for cases of fraud in the digital environment. Furthermore, the costliest of these cases are directly linked to cryptocurrency fraud schemes. 

“Cryptocurrency fraud schemes are becoming increasingly convincing, as fraudsters no longer merely promise quick profits – they establish long-term communication, project a professional image, use the names of well-known platforms and, step by step, gain people’s trust. Victims are often convinced that they are dealing with genuine investment advisers or representatives of international companies. Given the rapid development of the digital environment and technology, and considering the sophistication of fraudsters in Latvia, it is clear that cyber risk insurance may become an everyday necessity to protect oneself, at least in part, from financial losses,” emphasises Ivo Danče, Director of the Claims Department at BTA Insurance. 

The largest cyber risk insurance claim paid out by BTA this year amounted to the sum insured of 5,000 euros – in this case, fraudsters had contacted the victim via social media and messaging platforms such as ‘Facebook’, ‘Messenger’ and ‘Telegram’, offering specialised training and opportunities to make a profit by investing in cryptocurrencies. However, after the victim had set up digital wallets and made transfers over the course of more than a month, the fraudsters disappeared. It proved impossible to recover the money that had been deposited into the digital wallets on the “Trust Wallet” and “MetaMask” platforms. 

Losing several thousand euros in two hours 

In another incident, several thousand euros were swindled within two hours – initially, the victim was contacted by telephone by someone claiming to be a representative of the internationally renowned ‘Blockchain’ organisation, convincing her that there was money stored in her digital wallet that needed to be withdrawn. An email was then sent, asking her to use “Smart-ID” to sign contracts for the conversion of cryptocurrency. At the same time, she was persuaded not to log into her online banking whilst signing the contracts. Only after the contracts had been signed did the victim log into her online banking and discover that her money had disappeared. In this case, BTA paid out compensation amounting to 3,450 euros. 

In another case, fraudsters convinced the victim that by transferring a small sum of money as a commission fee for investing in cryptocurrency, it would be possible to earn 10,000 euros in a short space of time. To do this, the victim took out a quick loan, transferred the requested amount to the fraudsters, and did not receive the promised profit. The insurance payout for this incident amounted to 1,450 euros. 

“The digital world is an integral part of our daily lives, and it is important to be aware of the risks that can affect any one of us, even the most cautious and knowledgeable. Fraudsters’ activities show no sign of abating, and they will continue to seek out new and unpredictable ways to gain people’s trust. We are currently seeing that people are increasingly opting for cyber risk insurance, protecting themselves from losses caused by fraudsters up to the sum insured. That said, critical thinking, careful verification of information and refraining from making financial decisions in haste or under the influence of strangers remain essential forms of protection,” says Ivo Danče. 

How can you protect yourself from investment and cryptocurrency fraudsters? 

To protect yourself, the BTA expert urges you to critically assess all online offers that promise quick, easy and guaranteed returns without any risk. Before making any investment, you should always check whether the company is licensed and trustworthy, without relying solely on social media adverts or random correspondence with unknown investment advisers. 

It is equally important not to disclose your online banking, ‘Smart-ID’ or other authentication details to anyone, as banks and reputable financial service providers will never ask you to provide them over the phone, by email or on social media. 

Similarly, you should not rush into making financial decisions – fraudsters often try to create a sense of urgency so that you do not have time to critically assess the situation, consult with family and friends, your bank, and so on. Particular caution is required if you are asked to set up a digital wallet, install remote access software or make transfers to unfamiliar accounts – such requests are most often a sign of potential fraud.