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Usha Yadav
Jun 4, 2022
by Usha Yadav

Scammers Cashing in on Crypto Craze, Report Reveals

Scammers Cashing

Table of contents

  1. Crypto Has Several Features
  2. Digital Currency Fraud
Business and government impersonation scams are next, with $133 million in reported crypto losses since 2021. These scams can begin with a text message about an allegedly unlawful Amazon transaction or an alarming online pop-up that appears to be a Microsoft security notice. According to the FTC, over half of those who reported losing digital currency in a scam claimed it began with an ad, post, or message on a social media network. Last year, the cryptocurrency enthusiasm reached a fever pitch, with bitcoin reaching a record high of $69,000 in November.

Crypto Has Several Features

Scammers are drawn to crypto for various reasons, which may explain why reported losses in 2021 were approximately sixty times higher than in 2018. There is no centralized authority, such as a bank, to flag questionable transactions and attempt to prevent fraud before it occurs. Crypto transfers are irreversible; once the money is gone, it's gone forever. And the majority of people are still unaware of how cryptography works. These factors aren't unique to cryptocurrency transactions, but they all play into scammers' hands.

Digital Currency Fraud

According to reports, social media and cryptocurrency are an explosive combination for fraud, with $575 million in "bogus investment possibilities" accounting for approximately half of all losses due to digital currency fraud. The report has also revealed nearly four out of every ten dollars lost in a social media fraud was lost in crypto, far more than any other payment method. In such incidents, Instagram, Facebook, WhatsApp, and Telegram are the leading social media sites. According to the FTC, the average reported loss for a person was $2,600, and the top cryptocurrencies used to pay scammers were bitcoin, tether, and ether.

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Scammers Cashing in on Crypto Craze, Report Reveals
Usha Yadav
Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

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