Friday, June 10 2022

The Federal Trade Commission (FTC) exposes the scope and methods used by crypto fraudsters to amass $1 billion in illicit gains.

According to a new consumer protection report, the FTC said that since the start of last year, more than 46,000 people have had over $1 billion stolen through cryptocurrency scams, with victims losing a median amount of $2,600.

The report provides a breakdown of the digital assets that were used to pay off thieves, with Bitcoin (BTC) taking the vast majority at 70%, followed by stablecoin Tether (USDT) at 10% and altcoin major Ethereum (ETH) at 9% .

The FTC goes on to say that scammers prefer using digital assets for their schemes due to the lack of banking oversight, the inability to reverse a transaction, as well as the average consumer’s lack of knowledge about crypto and blockchain technology.

Source: United States Federal Trade Commission

Regarding the types of scams and losses, the report states,

“Since 2021, $575 million of all crypto fraud losses reported to the FTC were from bogus investment opportunities, far more than any other type of fraud…

Corporate and government impersonation scams come next with $133 million in reported crypto losses since 2021. These scams can start with a text about a supposedly unauthorized Amazon purchase, or an online pop-up alert designed to look like a security alert from Microsoft.

The report also gives examples of the sophistication of some of the tricks, with consumers seeming able to track the growth of their investments or even do a nominal withdrawal test in order to gain trust.

Source: United States Federal Trade Commission

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Featured Image: Shutterstock/SerGRAY/Natalia Siiatovskaia


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