According to a report released by the Federal Trade Commission on Friday, more than 46,000 customers claim to have lost more than $1 billion in cryptocurrency frauds since the beginning of 2021.
Last year’s loss was almost 60 times more than last year, with an average personal loss of $ 2,600.
According to the FTC (9 percent), top buyers of cryptocurrencies have shown that they use to pay for fraudulent bitcoin (70 percent), tether (10 percent), and ether (10 percent).
Payments for cryptocurrencies like Bitcoin are fixed and irrevocable, which is an important factor. This is usually not a good attribute. Chargebacks, a type of consumer protection tool, allows customers to cancel a service if they believe they have been unfairly charged for a product or service they did not receive.
About half of those who have lost cryptocurrency fraud since 2021 claim it started with a post on social media. The most talked about for this concern (7%) were Instagram (32%), Facebook (26%), WhatsApp (9%), and Telegraph (9%).
Scams involving unconventional investment opportunities are the most common. FTC has reported $ 575 million in crypto-currency losses related to investment offerings in 2021. People say that investing in websites and apps will allow users to track the progress of their cryptocurrency, but the apps are fraudulent, and they have not been able to withdraw their funds.
The FTC warned in its report:
“There is no centralised authority, such as a bank, to flag questionable transactions and attempt to prevent fraud before it occurs. These factors aren’t unique to cryptocurrency transactions, but they all play into scammers’ hands.”
Crypto fraudsters are likely to target small customers. People between the ages of 20 and 49 were three times more likely than older groups to report the loss of crypto money to a criminal, according to the FTC.
According to the FTC, people should be aware that cryptocurrency investing has never been guaranteed, avoid business agreements requiring the purchase of cryptocurrency, and be aware of the exciting advent that accompanies crypto request.
Read more: Pig Slaughtering crypto scam results in millions of theft in silicon valley
