More than 46,000 consumers have reported losing a total of $1 billion in cryptocurrency to scammers since early 2021. The median reported loss from an individual scam was $2,600.
Since the start of last year, more than 46,000 consumers have reported losing a total of $1 billion in cryptocurrency to scammers, the Federal Trade Commission said in a new report Friday.The data are based on fraud reports made directly to the FTC, and therefore they likely underestimate the total impact of crypto scams on American consumers, given that many victims do not report their experiences to the government.
“There’s no bank or other centralized authority to flag suspicious transactions and attempt to stop fraud before it happens,” she added. “Crypto transfers can’t be reversed – once the money’s gone, there’s no getting it back. And most people are still unfamiliar with how crypto works. These considerations are not unique to crypto transactions, but they all play into the hands of scammers.”
Social media is a major breeding ground for crypto-related fraud, the FTC said, with nearly half the people who reported losing money to crypto scams saying it was instigated by an ad, post or message on a social media platform.