Over $1 Billion Lost to Crypto Scams Since 2021 - FTC

Daniel Attoe
Daniel Attoe

Updated · Jun 06, 2022

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The report from Friday shows that the scams have affected more than 46,000 people.

A Perfect Storm

Since the beginning of 2021, more than 46,000 people have reported losing over $1 billion to cryptocurrency scams, says the Federal Trade Commission. 

A significant portion of people who lost their money to scams say that they fell for social media posts, ads, or messages. Scammers mainly used Instagram, Facebook, WhatsApp, and Telegram.

“The stories people share about these scams describe a perfect storm; false promises of easy money paired with people’s unlimited crypto understanding and experience,” the report said.

In May, the Security and Exchanges Commission (SEC) announced that it would double its unit tasked with investigating cryptocurrency fraud.

More Details

As cryptocurrency adoption has exploded, so has the rate of fraud committed using digital currencies. 

According to the FTC, the reported figure makes up about one of every four dollars lost to fraud in that period. Additionally, the disclosed losses to these scams in 2021 were nearly 60 times the total in 2018. The median loss stands at $2,600.

Bitcoin was the currency used to pay scammers the most, standing at 70%. The popular stablecoin Tether comes in second, followed by Ether. 

In terms of demographics, the victims were typically younger people. People in the 20-49 age group were more than three times more likely to report losing money to crypto scams. Of that, people aged 30-39 were the worst hit.

Sources.

FTC

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Daniel Attoe

Daniel Attoe

Daniel is an Economics grad who fell in love with tech. His love for books and reading pushed him into picking up the pen - and keyboard. Also a data analyst, he's taking that leap into data science and machine learning. When not writing or studying, chances are that you'll catch him watching football or face-deep in an epic fantasy novel.

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