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CRYPTOCURRENCY

$1 billion dollars lost in crypto scams: FTC reports

$1 billion dollars lost in crypto scams: FTC reports
The Siliconreview
06 June, 2022

Crypto scams have become increasingly popular, 60 times higher than in 2018.

According to the Federal Trade Commission report, more than 46,000 people have reported losing over $1 billion in cryptocurrency in scams since the start of 2021. This is the most out of any other payment method. The top currencies used to pay scammers included Ether, Tether, and Bitcoins. The victims usually belong to the younger age group of 25-40 years. The scams have started via social media platforms like WhatsApp, Instagram, Facebook, and Telegram through ads, posts, or messages. The median individual reported loss was $2,600.

Crypto scams have become increasingly popular, 60 times higher than in 2018. The majority of the scams were investment-related fraud. The FTC reported $575 million in losses for bogus investment opportunities since 2021. Romance-related cons were the second most common type of scam. In 2021, the reported casualties were nearly sixty times more than what was reported in 2018. Since crypto isn't centralized, there is no entity to report fraud, nor can the transactions be reversed. The FTC advised people to stay clear of guaranteed profits and significant returns. Additionally, the FTC warned that "nobody legit will require you to buy cryptocurrency" and to "never mix online dating and investment advice. The FTC's warning comes at a volatile time in the crypto market.