Lately, it might seem like crypto has gone mainstream with Bitcoin ATMs to ads for the Super Bowl selling these cutting-edge digital tokens. Where there is money, there are scammers. Since 2021 about $1 billion has been swindled from about 50,000 victims, based on numbers from the Federal Trade Commission (FTC).
The FTC's report states that "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 reported lost, more than any other payment method." With scammers favoring Bitcoin (BTC) at 70%, Tether (USDT) at 10%, and Ethereum (ETH) at 9%.
From there, the report details that most crypto scams have rapidly increased by 60-fold from 2018 to 2021, all thanks to factors such as most people not being well versed in how this tech works and unable to understand how transfers are irreversible.
At no surprise, there are social media at the heart of this. Most victims got scammed through platforms such as Instagram (32%), Facebook (26%), WhatsApp (9%), and Telegram (7%). What is happening is most people who fall victim are lured by some advertisement, post, or message on one of these platforms promising massive returns and easy money.
The FTC points out that "these keyboard Casanovas reportedly dazzle people with their supposed wealth and sophistication. Before long, they casually offer tips on getting started with crypto investing and help with making investments."
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