US Federal Trade Commission Warns About Cryptocurrency Scams Using Social Media

The U.S. Federal Trade Commission (FTC) has warned about social media being utilized in cryptocurrency funding scams. “Social media is a instrument for scammers in funding scams, notably these involving bogus cryptocurrency investments — an space that has seen an enormous surge in reviews,” stated the FTC.

Federal Trade Commission Warns of Crypto Scams Utilizing Social Media

The U.S. Federal Trade Commission (FTC) printed a “Consumer Protection Data Spotlight” final week, warning the general public about scams, together with crypto funding scams, using social media.

The FTC is an unbiased company of the U.S. authorities whose principal mission is the enforcement of civil U.S. antitrust regulation and the promotion of client safety.

“More than 95,000 folks reported about $770 million in losses to fraud initiated on social media platforms in 2021,” FTC’s program analyst Emma Fletcher wrote. “Those losses account for about 25% of all reported losses to fraud in 2021 and symbolize a shocking eighteenfold improve over 2017 reported losses.” She added:

Reports clarify that social media is a instrument for scammers in funding scams, notably these involving bogus cryptocurrency investments — an space that has seen an enormous surge in reviews.

“More than half of people that reported losses to funding scams in 2021 stated the rip-off began on social media,” the FTC analyst continued. “Reports to the FTC present scammers use social media platforms to advertise bogus funding alternatives, and even to attach with folks straight as supposed associates to encourage them to speculate. People ship cash, typically cryptocurrency, on guarantees of big returns, however find yourself empty handed.”

The FTC proceeded to present some recommendation on how you can keep protected on social media. One is to restrict who can see your posts and knowledge on social media. The company stated you could additionally choose out of focused promoting. Another piece of recommendation is to take a look at the corporate you’re about to purchase from by looking on-line whether or not its title has been related to a rip-off or a criticism.

In addition, “If you get a message from a good friend about a chance or an pressing want for cash, name them. Their account could have been hacked – particularly in the event that they ask you to pay by cryptocurrency, present card, or wire switch. That’s how scammers ask you to pay,” the FTC wrote.

Earlier this month, the FTC warned about cryptocurrency scams involving ATMs.

According to blockchain analytics agency Chainalysis, scammers raked in a document $14 billion in cryptocurrency in 2021, largely because of the rise of decentralized finance (defi) platforms. Losses from crypto-related crime rose 79% from a 12 months earlier, pushed by a spike in theft and scams, the agency stated.

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