The median loss for an individual was $2,600. However, the figure for victims aged 70 and older was close to $12,000. According to the Federal Trade Commission, more than 46,000 people have lost over $1 billion in scams related to crypto-related transactions since last year’s beginning.
According to a report, approximately $680 million worth of fraud was reported in 2021. Some $329 million was reported in the first quarter 2022.
The FTC stated that social media use while holding crypto can create “a combustible mixture for fraud.” “Nearly half of those who lost crypto to scams since 2021 stated that it began with a post, a message, or ad on a social networking platform.”
The report stated that most people still don’t know how crypto works. These considerations aren’t just for crypto transactions; they all fall into the hands scammers.
According to the report, Bitcoin (70%), Tether (10%) and Ether (9%) were among the most frequently stolen cryptocurrency.
Nearly 44% of 10 dollars lost due to scams originating on social media were connected to crypto. The most popular platforms are Facebook (32%), Instagram (26%), or Whatsapp (9%)
Individuals aged 20-49 were three times more likely to report being scammed than those of older age groups. However, older people reported losing larger sums – the median victim’s loss in their 70s was almost $12,000.
The FTC stated that “the stories people tell about these scams are a perfect storm: false claims of easy money combined with limited crypto knowledge and experience.” Scammers claiming to be investment scammers claim that they can quickly and easily make huge returns for investors. These crypto “investments” go directly to the wallet of a scammer.
