FTC Reports Over 46 233911 000 People Lost More Than $1 Billion in Cryptocurrency Scams Since 2021

Bitcoin, Tether and Ether were the top cryptocurrencies that people used to pay scammers. 6m6rk

By Gadgets360 Staff with Inputs from Reuters | Updated: 4 June 2022 11:29 IST

FTC Reports Over 46,000 People Lost More Than $1 Billion in Cryptocurrency Scams Since 2021

Photo Credit: Unsplash/ Kanchanara 182c5h

Instagram, Facebook, WhatsApp and Telegram top platforms for crypto scam

Highlights

Nearly 50% people reported losing digital currencies in a scam due to ad
The average reported loss for an individual was $2,600
Nearly 40% lost in a fraud originating on social media was lost in crypto

ment

More than 46,000 people reported losing over $1 billion (roughly Rs. 7,770) in cryptocurrency scams since the start of 2021, the Federal Trade Commission (FTC) said in a report on Friday.

Nearly half the people who reported losing digital currencies in a scam said it started with an ad, post or a message on a social media platform, according to the FTC.

The craze for Bitcoin hitting a record high of $69,000 (roughly Rs. 53.6 lakh) in November. (Bitcoin price in India at 11:12am on June 4 was Rs. 24,38,152)

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Reports point to social media and crypto as a combustible combination for fraud, the agency said, adding that about $575 million (roughly Rs. 4,467 crore) of all losses related to digital currency frauds were about "bogus investment opportunities".

Nearly four out of every ten dollars lost in a fraud originating on social media was lost in crypto, far more than any other payment method, with Telegram being the top social media platforms in such cases, according to the report.

The average reported loss for an individual was $2,600 (roughly Rs. 2,02,000) and bitcoin, ether were the top cryptocurrencies that people used to pay scammers, the FTC said.

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In May, Elon Musk, in response, let out a “rolling on the floor laughing” emoji to Markus' tweet which the latter lauded as being particularly brilliant.

Adding to his original tweet, Markus said that the people who are going to be "triggered" and "lash out" at his tweet are "scammers." The tweet, as expected, sparked a heated debate among of the crypto community on Twitter.

© Thomson Reuters 2022

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