Investors Reported Losing Over $1 Billion in Crypto to Scams Since 2021

The U.S. Federal Trade Commission published a “Data Spotlight” record on crypto scams Friday. The FTC is the handiest federal organisation inside the u . S . A . With each customer protection and opposition jurisdiction in wide sectors of the economic system, the regulator’s website describes.

Emma Fletcher, senior records researcher on the FTC, wrote:

Since the begin of 2021, greater than 46,000 humans have stated dropping over $1 billion in crypto to scams – that’s approximately one out of each 4 bucks said lost, more than another fee technique.

Specifically, $680 million in cryptocurrency fraud losses were stated in 2021. In the primary quarter of this yr, the losses because of crypto fraud amounted to $329 million.

The researcher added that the median character pronounced loss is $2,600, noting:

The top cryptocurrencies humans said they used to pay scammers had been bitcoin (70%), tether (10%), and ether (9%).

The regulator similarly defined that nearly 1/2 the people who stated dropping crypto to a rip-off considering that 2021 said it started with “an advert, post, or message on a social media platform.” The pinnacle systems stated through buyers have been Instagram (32%), Facebook (26%), Whatsapp (9%), and Telegram (7%).

US Regulator: Investors Reported Losing Over $1 Billion in Crypto to Scams Since 2021

Top frauds by means of pronounced crypto losses. Source: FTC

In addition, of the suggested crypto fraud losses that began on social media, maximum ($575 million) are investment scams, the FTC stated. Romance scams came 2nd, with $185 million in said cryptocurrency losses on the grounds that 2021

People a while 20 to 49 had been more likely to have mentioned dropping cryptocurrency to a scammer, with those of their 30s being hit the toughest, the regulator referred to. However, median individual suggested losses increased with age, topping out at $11,708 for humans of their 70s.