FTC Data Spotlight says reported crypto scam losses have exceeded $1 billion since 2021

We call it the “lounger interval”—the amount of time it takes for an obscure niche product to start airing prime-time television commercials. Of course, this is a fictitious indicator, but a few hours in front of the TV will prove that cryptocurrency advertising has become mainstream. Now here’s an unmade metric. According to the latest FTC consumer protection data spotlight, since the beginning of 2021, More than 46,000 More than $1 billion in losses reported exist cryptocurrency arrive Scam.Approximately a quarter of the U.S. dollar was reportedly lost to fraud during this period.

Data Spotlight Shows Crypto Scam Losses Reported in 2021 almost 60 times situation in 2018. Certain characteristics of cryptocurrency may explain why it is a favorite payment method for scammers and scammers. No bank or other entity can flag suspicious transactions before they occur. Cryptocurrency transfers cannot be reversed. oxygenOnce the money is gone, you can kiss your cryptocurrency Buch-goodbye. Most people are still unfamiliar with how cryptocurrencies work. These considerations are not unique to cryptocurrencies, but they do provide insight into why cryptocurrencies have become a favorite among scammers.

The problem is compounded by the way social media and cryptocurrencies form a “combustible combination” (quoted in Data Spotlight). Nearly half of people who have lost cryptocurrency to scams since 2021 said the scams started with ads, posts or messages on social media platforms. Among those who designated the platform on which the scam began, 32% On Instagram, 26% said Facebook, 9% said WhatsApp and 7% said Telegram.

From 2021, $Chapter 575 $1 million in reported cryptocurrency fraud losses Involving false investment opportunities. Investment scammers promise huge returns but then often use cryptocurrency smoke and mirrors to deceive people’s inexperience. For example, some people have reported that certain websites and apps that claim to track the growth of their cryptocurrency investments turn out to be bogus with impressive-sounding returns.Others told us that scammers gained their trust by allowing them to make small “test” withdrawals, but when they tried to cash out, they usTold to send more cryptocurrency in “fees” They didn’t get any money back

Data Spotlight describes other typical MOs used Scammers get people to transfer cryptocurrencies. Romance scams and imposter scams continue to be people’s favorite scams. These messages may begin with false text about unauthorized purchases from national brands such as Amazon. The scammer may even call the “bank” to corroborate the story, but this is really just an accomplice in crime.

So who falls for cryptocurrency scams? According to Data Spotlight, consumers in the 20-49 age group are more than three times more likely than older consumers to report lost cryptocurrency to scammers. People in their 30s appear to be the hardest hit, with 35% of their reported fraud losses being sent through cryptocurrencies since 2021. But in terms of personal losses, people in their 70s reported the highest median losses, at $11,708. This is consistent with trends we’ve seen from previous data spotlights: Older consumers may report lower fraud rates, but when they do report financial losses, the amounts tend to be higher.

Data spotlight shows that even those who think they are tech-savvy can lose money to cryptocurrency scammers. To protect yourself, remember these three things:

1. Only scammers guarantee profits or big profits return.
2. No one will insist on you buying cryptocurrencies.
3. If an online romantic partner asks you to send cryptocurrencies or claims they can show you how to make money investing in cryptocurrencies, stop your virtual romance.

Looking for more information about cryptocurrency scams?access ftc.gov/cryptocurrency. Report deceptive practices to the FTC: reportfraud.ftc.gov.