- Fraudsters also target customers by pretending to be a company or government.
- According to FTC data, many criminal organizations prefer to pay using cryptocurrencies.
Federal Trade Commission data shows that over 46,000 consumers have been scammed out of over $1 billion in cryptocurrency since the start of 2021. There has been an upsurge in the number of scams targeting those who want to make money rapidly using digital means.
According to FTC data, many criminal organizations prefer to pay using cryptocurrencies, which found that almost $1 out of every $4 in these scams was paid in cryptocurrency. A majority of crypto fraudsters were paid using Bitcoin, followed by Tether (10%) and Ether (9%), according to the Federal Trade Commission (FTC). As interest in cryptocurrencies peaked in November of 2021, Bitcoin hit a new all-time high of $69,000.
Victims Targeted Through Social Media
Compared to 2018, the damages in cryptocurrency that year were 60 times higher. Data analyst Emma Fletcher of the Federal Trade Commission indicated that these estimates probably only represent a tiny part of overall losses since most crimes go undetected. According to the FTC, about half of those who reported being scammed online said it started with an ad, post, or private message they received on a social media site.
There was around $575 million worth of projected losses attributed to fraudulent investment opportunities in which crypto fraudsters claimed that investing in cryptocurrency projects would provide great rewards. Still, many who did so lost their whole life savings.
Several other fraudulent stories, including investment scams, have already deceived consumers. When it comes to defrauding money from those looking for love, romance scams are the second most common. According to the reports, fraudsters also target customers by pretending to be a company or government and claiming that their finances are in danger of fraud or investigation unless they convert to cryptocurrency.