On June 3, 2022, the FTC published an article which talked about crypto scam losses. According to the latest FTC Consumer Protection Data Spotlight, more than 46,000 people have reported losing over $1 billion in crypto to scams since the start of 2021. That’s about one out of every four dollars reportedly lost to fraud during that period. According to the report, the median individual reported loss is $2,600.
The FTC’s Data Spotlight reveals that reported losses to crypto scams increased by 60 times in 2021 compared to 2018. Some features of cryptocurrency may explain why it’s a favorite payment method for scammers such as there’s no bank or other entity to flag suspicious transactions, crypto transfers can’t be reversed, and most people are still unfamiliar with how crypto works. Almost half the people who reported losing crypto to a scam said it was initiated through an ad, post, or message on a social media platform. Of those who specified the platform where the scam began, 32% said it was on Instagram, 26% said Facebook, 9% said WhatsApp, and 7% said Telegram.
Investment related fraud topped the reported cryptocurrency losses at $575 million. Romance scams and imposter scams also remained as favorite modes of scam. In addition, the 20-49 age group was more than three times more likely than older consumers to report losing cryptocurrency to a scammer. But when it comes to individual losses, median reported losses for people in their 70s have been the highest at $11,708.
Read the FTC’s business blog post here.
The FTC Consumer Protection Data Spotlight can be found here.
