FTC Business Blog on Crypto Scam Losses

The Federal Trade Commission has posted an article, "Reported crypto scam losses since 2021 top $1 billion, says FTC Data Spotlight," on his Business Blog. According to the latest FTC Consumer Protection Data Spotlight, since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams. That’s about one out of every four dollars reportedly lost to fraud during that period.

The Data Spotlight reveals that reported losses to crypto scams in 2021 were nearly 60 times what they were in 2018. Certain features of cryptocurrency may explain why it’s a favorite payment method for crooks and cons. There’s no bank or other entity to flag suspicious transactions before they happen. Crypto transfers can’t be reversed. Once the money’s gone, it's gone. And most people are still unfamiliar with how crypto works.

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. 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. More than half of the reported losses involved bogus crypto investment opportunities.