Social media blamed a $ 1 billion loss on cryptocurrency in 2021

Social media blamed a $ 1 billion loss on cryptocurrency in 2021 – Mail Bonus

The US Federal Trade Commission has labeled social media and cryptocurrencies as a “flammable combination for fraud”, as almost half of all cryptocurrency-related scams originated from social media in 2021.

The report, released on Friday, found that up to $ 1 billion in cryptocurrencies have been lost to fraudsters over the year, more than quintupling from 2020 and nearly sixty times from 2018.

As of March 31, the amount of cryptocurrency lost was already approaching half of the 2021 figure, which shows that momentum does not seem to be slowing down.

The FTC found that Instagram (32%), Facebook (26%), WhatsApp (9%) and Telegram (7%) were the top platforms used for cryptocurrency fraud.

Interestingly, Twitter, the social media that the cryptocurrency community has generally adopted, was not mentioned despite being full of spam and scams that offer fake cryptocurrencies.

Based on fraud reports to the FTC Consumer Sentinel Network, the most common type of cryptocurrency fraud was investment-related fraud, which is $ 575 million out of a total of $ 1 billion.

“These scams often falsely promise potential investors that they can make huge returns by investing in their cryptocurrency systems, but people report that they have lost all the money they ‘invest’.”

According to the FTC, there are common investment fraud cases where the so-called “investment manager” contacts the consumer and promises to increase his money – but only if the consumer buys a cryptocurrency and transfers it to his online account.

Other methods involve imitating celebrities who can multiply any cryptocurrency that the consumer sends them or promises free money or cryptocurrency.

The FTC also registers fraud involving investment in counterfeit art, precious and rare coins, counterfeit investment training and consulting, and other miscellaneous investment fraud as part of this group.

The next biggest loss related to cryptocurrency fraud came from Romantic Fraud at $ 185 million, where a love interest tries to entice someone to invest in cryptocurrency fraud.

Business and government scams came in third place for a total of $ 133 million, with fraudsters targeting consumers and claiming that their money is at risk due to fraud or government investigations.

“This scam can start with a text about an alleged illegal purchase on Amazon, or a scary online pop-up that is designed to look like a security alert from Microsoft. From there, people are told that fraud is widespread and their money is at risk. “

The fraudsters will then pretend to be representatives of the bank to secure the person’s cryptography.

In other cases, fraudsters have imitated border guards who tell people that their fiat accounts are frozen as part of a drug smuggling investigation. These scammers tell people that the only way to protect their money is to encrypt it. They are advised to withdraw cash and transfer it to an ATM and are tricked into sending it to the scammers’ wallet address instead.

The report found that people aged 20-49 were more likely to lose cryptocurrencies to scammers, with those in their thirties being the worst off, accounting for 35% of the total loss reported for fraud.

Connected: Life after crime: What happens to cryptocurrencies seized in criminal investigations?

The amount of cryptocurrency lost increases by age group, with the median of the person reporting a loss of cryptocurrency for those in their seventies and reaching up to $ 11,708, compared to only $ 1,000 for 18 and 19 year olds.

An article on the FTC’s Consumer Advice website shows some ways to avoid cryptocurrency fraud:

  • Only scammers require payment in cryptocurrency. No legitimate company will require you to send a cryptocurrency in advance – not to buy anything and not to protect your money. It’s always a scam.
  • Only scammers will guarantee a profit or a high return. Do not trust people who promise that you can make money in cryptocurrencies quickly and easily.
  • Never confuse online dating with investment advice. If you meet someone on a dating site or app and they want to show you how to invest in cryptography or ask you to send them cryptography, then it’s a scam.

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