Crypto scams are on the rise, according to the latest report published by the US Federal Trade Commission (FTC). Since the start of 2021, more than $1 billion worth of digital assets has been lost in cryptocurrency scams. The fraudulent activities affected approximately 46,000 people.
According to the details shared by the FTC, the affected people paid almost 70% of the total amount in Bitcoin, the world’s largest digital asset. Around 10% was paid in Tether (USDT) and nearly 9% in Ethereum. A large percentage of the recent crypto scams happened on social media platforms.
Since the start of 2021, people have lost almost $575 million in investment-related crypto scams. $185 million worth of crypto assets were lost to romance frauds. The total value of cryptocurrency scams related to business imposters stood at $93 million.
"Investment scammers claim they can quickly and easily get huge returns for investors. But, those crypto 'investments' go straight to a scammer’s wallet. People report that investment websites and apps let them track the growth of their crypto, but it’s all fake. Some people report making a small 'test' withdrawal, just enough to convince them it’s safe to go all in. When they really try to cash out, they’re told to send more crypto for (fake) fees, and they don’t get any of their money back,” the FTC noted in its report.
Frauds
Amid the growing popularity of digital currencies among young people, fraudulent actors have found different ways to scam them. According to the report, people aged between 20 and 49 were more likely to fall into the trap of cryptocurrency scammers.
“Only scammers will guarantee profits or big returns. No cryptocurrency investment is ever guaranteed to make money, let alone big money. Nobody legit will require you to buy cryptocurrency. Not to sort out a problem, not to protect your money. That’s a scam,” the FTC warned.
