Investors Lose $1 Billion to Crypto Scams – US Regulator
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The U.S. Federal Trade Commission (FTC) has revealed that at least $1 billion was lost in various crypto scams in 2021.
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A report revealed that 46,000 people were affected by cryptocurrency scams between January 2021 and now.
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$680 million in cryptocurrency fraud losses were reported in 2021.
On Friday, the U.S. Federal Trade Commission published a report on crypto scams called “Data Spotlight”. The report contained data about the effect of cryptocurrency scams in the United States.
It revealed that more than 46,000 people have reported losing over $1 billion in cryptocurrency to scams since the start of 2021.
Emma Fletcher, a senior data researcher at the FTC, wrote:
“Since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams – that’s about one out of every four dollars reported lost, more than any other payment method.”
The report revealed that $680 million in cryptocurrency scam losses were reported in 2021. Since the start of this year, another $329 million has been lost to scammers in various fraud incidents.
Fletcher noted that the median individual reported loss is around $2,600. She also revealed that the top cryptocurrency victims used to pay the fraudsters was Bitcoin (70%). The scammers also received Tether (10%), and Ether (9%).
The regulator further disclosed that half of the people who reported losing crypto to a scam since 2021 said that it started with an ad, post, or message on social media.
Read also: Chipotle Restaurant Strikes Crypto Payment Deal
The top platforms reported by investors were Instagram (32%), Facebook (26%), Whatsapp (9%), and Telegram (7%).
Also, of the reported crypto scam losses that started on social media, most ($575 million) were investment scams. Romance crypto scams were next with $185 million in reported cryptocurrency losses since 2021.
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