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The Federal Trade Commission (FTC) Consumer Protection Data Spotlight states that more than 46,000 people have reported losing over $1 billion in crypto to scams since the start of 2021. The median individual reported loss is about $2,600.
This Spotlight reveals that the reported losses to crypto scams increased by 60 times in 2021 compared to 2018. Cryptocurrency has become a favorite form of payment for scammers because there is no financial institution to flag suspicious transactions, it 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 social media. Of those who specified a platform, 32% said Instagram,
26% said Facebook, 9% said WhatsApp, and 7% said Telegram.
These scams range from Investment fraud to romance scams to imposter scams. The 20-49 year old age group was more than three times as likely than older consumers to report losing cryptocurrency. When it comes to individual losses, the median reported loss for people in their 70s have been the highest at $11,708.
Utility scams are on the rise. Scammers will call saying that your services will be shut off and demand cryptocurrency as payment. Companies will not call or text about payment. Before shut off, the company will notify you in writing and offer repayment plans.
If you suspect that you or someone you know has been a victim of a Crypto Scam, please call us at 908-859-1811 and a Customer Service Representative can help talk you through next steps.
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