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Crypto Scams Conned Hundreds Out of Collective $1 Billion Since 2021

  • More than 46,000 individuals fell prey to crypto scams for the reason that starting of 2021, in line with the Federal Trade Commission
  • They collectively misplaced greater than $1 billion, the FTC mentioned in a brand new report.
  • About half the scams began on social media websites like Instagram and Facebook.

More than 46,000 individuals reported shedding over $1 billion in cryptocurrency scams for the reason that begin of 2021, in line with the Federal Trade Commission

Crypto accounted for about one out of each 4 {dollars} reported misplaced, essentially the most out of every other cost technique, the FTC mentioned in a report launched Friday. 

The median particular person loss was $2,600, and the highest cryptocurrencies used to pay scammers included Bitcoin, Tether, and Ether, the FTC mentioned.

About half of the individuals who reported being scammed mentioned it began with an advert, publish, or message on a social media platform. Instagram, Facebook, WhatsApp, and Telegram all topped the checklist of social media websites reported because the supply of the scams. 

The majority of the scams had been investment-related fraud, with the FTC reporting $575 million in losses for bogus funding alternatives since 2021. Romance-related cons had been the second most typical sort of scams. 

The reported losses in 2021 had been practically sixty instances greater than what was reported in 2018. According to the FTC, since crypto is not centralized in a financial institution, there is no entity to report fraud or suspicious exercise to, and the transactions cannot be reversed. 

The FTC shared some recommendation to assist individuals keep away from future scams, together with staying away from assured earnings and large returns: “No cryptocurrency investment is ever guaranteed to make money, let alone big money.

Additionally, the FTC warned “no one legit would require you to purchase crypto forex,” and to “by no means combine on-line courting and funding recommendation.

“If a new love interest wants to show you how to invest in crypto, or asks you to send them crypto, that’s a scam,” the FTC mentioned.

 



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