Consumers lose over $1 billion to crypto-currency scams since 2021 – FTC

The United States’ Federal Trade Commission says that “since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams”. What’s worse, the FTC says that because most frauds are not reported, these figures reflect just a small fraction of the volume of crypto-currency fraud going on.

According to the report, bogus investment opportunities remain a hot attraction for most victims of crypto-currency scam.

Reports point to social media and crypto as a combustible combination for fraud. Nearly half the people who reported losing crypto to a scam since 2021 said it started with an ad, post, or message on a social media platform.[4]

During this period, nearly four out of every ten dollars reported lost to a fraud originating on social media was lost in crypto, far more than any other payment method.[5] The top platforms identified in these reports were Instagram (32%), Facebook (26%), WhatsApp (9%), and Telegram (7%).[6]

It is made worse by the fact that crypto transfers cannot be reversed: once the transfer is made, it is gone for good.