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

The U.S. Federal Trade Commission (FTC) has revealed that greater than 46,000 folks have reported shedding over $1 billion in cryptocurrency to scams because the starting of final yr.

FTC Says Scammers Stole Over $1 Billion in Crypto

The U.S. Federal Trade Commission revealed a “Data Spotlight” report on crypto scams Friday. The FTC is the one federal company within the nation with each shopper safety and competitors jurisdiction in broad sectors of the financial system, the regulator’s web site describes.

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

Since the beginning of 2021, greater than 46,000 folks have reported shedding over $1 billion in crypto to scams – that’s about one out of each 4 {dollars} reported misplaced, greater than some other cost methodology.

Specifically, $680 million in cryptocurrency fraud losses have been reported in 2021. In the primary quarter of this yr, the losses as a result of crypto fraud amounted to $329 million.

The researcher added that the median particular person reported loss is $2,600, noting:

The high cryptocurrencies folks stated they used to pay scammers have been bitcoin (70%), tether (10%), and ether (9%).

The regulator additional defined that just about half the individuals who reported shedding crypto to a rip-off since 2021 stated it began with “an advert, publish, or message on a social media platform.” The high platforms reported by buyers have been Instagram (32%), Facebook (26%), Whatsapp (9%), and Telegram (7%).

In addition, of the reported crypto fraud losses that started on social media, most ($575 million) are funding scams, the FTC stated. Romance scams got here second, with $185 million in reported cryptocurrency losses since 2021

People ages 20 to 49 have been extra more likely to have reported shedding cryptocurrency to a scammer, with these of their 30s being hit the toughest, the regulator famous. However, median particular person reported losses elevated with age, topping out at $11,708 for folks of their 70s.

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