The FTC provides an overview of crypto scams in the United States. Scams that would have cost more than a billion dollars to the victims.
The crypto world continues to attract all kinds of scammers. In total, the victims would have lost more than a billion dollars because ofscams various since the start of 2021, according to a recent FTC report. Between January 2021 and March 2022, more than 46,000 people filed a fraud complaint with the US agency. On average, losses are $2,600.
FTC provides insight into crypto scams in the US
And the coins most used in scams are also the most popular. For example, 70% of scams used Bitcoin as a payment method, followed by Tether (10%) and Ether (9%). Ether is currently the main currency for NFTs, a relatively new crypto market that scammers are having a blast on.
Crypto investment scams are the most common type reported to the FTC, accounting for no less than $575 million in losses. Normally, these scams target amateur investors promising them big returns on their initial investment. “These scammers claim that they can easily and quickly get returns for investors. But these crypto ‘investments’ go straight into the scammer’s wallet,” writes the FTC’s Emma Fletcher in a blog post.
Scams that would have cost victims more than a billion dollars
Romance scams also account for a large share of scams, with $185 million in losses. The majority of these scammers contact victims through social media or dating apps. Among the techniques used, “pig slaughter,” criminals establish a false relationship with a victim to convince them to invest in crypto. This process is becoming increasingly popular, according to CoinTelegraph.
It is important to clarify that this FTC report only offers a very small overview of all crypto scams, as the US agency only counts reports submitted directly by victims. According to another study by the FTC, less than 5% of victims of fraud report it to the government and probably even less to the FTC. As crypto continues to grow in popularity, the number of scams is also exploding. The Chainanalysis platform estimated some time ago that illicit addresses received over $14 billion in crypto last year, more than double that of 2020.
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