More than 46,000 people in the United States have reported losing more than $ 1 billion in cryptocurrency fraud since early 2021.
Some 46,000 Americans have lost more than $ 1 billion in cryptocurrency scams since early 2021, according to a report by the Federal Trade Commission (FTC).
The U.S. government agency found that cryptocurrency losses last year were nearly 60 times more than in 2018, with an average loss of $ 2,600 ($ 3,610).
The major cryptocurrencies that people used to pay scammers were bitcoin (70%), tether (10%) and ether (9%).
Nearly half of those who reported losing their cryptocurrency due to a scam said it started with an ad, post, or message on a social media platform. The main platforms identified were Instagram (32%), Facebook (26%), WhatsApp (9%) and Telegram (7%).
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Most of the scams were fake investment opportunities, with a cryptocurrency loss of $ 575 million ($ 798.5 million).
“The stories people share about these scams describe a perfect storm: false promises of easy money combined with people’s limited understanding and experience in cryptography,” the FTC report said.
Romantic scams were the second most common type of fraud followed by the inconveniences of corporate and government impersonation.
The study also found that people between the ages of 20 and 49 were more than three times more likely to report losing a cryptocurrency to a scammer than older age groups.
The FTC shared some tips to help people avoid future scams, warning that “no investment in cryptocurrency is ever guaranteed to make money.”
“If a new love interest wants to show you how to invest in crypto or asks you to send them crypto, this is a scam,” the FTC said.
The news comes when the Australian Competition and Consumer Commission (ACCC) revealed that Australians have lost $ 113 million due to cryptographic scams in just four months of 2022.
The ACCC said people should always be wary of anyone asking to be paid in things like bitcoin and ethereum, as cryptocurrency is the most common payment method for investment scams.
“Australians should be wary of anyone asking them to invest or transfer money using cryptocurrency, especially if it’s someone you’ve only met online,” said ACCC Vice President Delia Rickard.
“Many consumers are unfamiliar with the complexities of cryptocurrency and this can make them more vulnerable to scams.”
– With NCA NewsWire