FTC – Crypto Scam Losses Since 2021 top $1 billion.
According to the Federal Trade Commission it revealed that reported losses to crypto scams in 2021 were nearly 60 times what they were in 2018. Certain features of cryptocurrency may explain why it’s a pet payment method for crooks and cons. There’s no bank or other entity to flag suspicious transactions before they happen. Crypto transfers can’t be reversed. Once the money’s gone, you can kiss your crypto bye-bye, and most people are still unfamiliar with how crypto works.
Nearly half the people who reported losing crypto to a scam since 2021 said it started with an ad, post, or message on a social media platform. Of those who specified the platform where the scam began, 32% said it was on Instagram, 26% said Facebook, 9% said WhatsApp, and 7% said Telegram.
Since 2021, $575 million of the reported crypto fraud losses involved bogus investment opportunities. Investment scammers promise big returns, but then often use crypto smoke and mirrors to prey on people’s inexperience.
For example, some people report that certain websites and apps claimed to track the growth of their crypto investment, but the impressive-sounding returns turned out to be fake. Others tell the FTC that scammers won their confidence by allowing them to make a small “test” withdrawal, but when they try to cash out, they were told to send more crypto in “fees” and they don’t get any of their money back
The FTC Data Spotlight describes other typical MOs used by con artists to get people to send crypto. Romance scams remain a favorite, as well as imposter scams. Those may start with a bogus text about a supposedly unauthorized purchase from a national name like Amazon. Scammers may even get a “bank” on the line to confirm the story, but it’s really just a partner in crime.
Thoughts about Crypto
Sadly, it appears many people have lost everything to not only Crypto Scams, but to the whole process of Crypto investing.
Just a few weeks ago Terra Luna was one of the world’s biggest cryptocurrencies, but after a coordinated attack on its systems, Terra Luna is now worthless.
The financial massacre didn’t just leave thousands of keen investors millions out of pocket, it also sent many spiraling into dark mental health holes, some so bad they even attempted suicide.
Then a relaunch of Terra Luna 2.0 began a week after the huge crash and it now appears this too has crashed and burned.
This to me sounds like a Snake Oiled Ponzi Scheme.
Snake Oil (a product, policy, etc. of little real worth or value that is promoted as the solution to a problem) + Ponzi Scheme (a form of fraud in which belief in the success of a nonexistent enterprise is fostered by the payment of quick returns to the first investors from money invested by later investors) = Crypto
I couldn’t imagine integrating Crypto into the whole financial market system, unless you’re a crook. The only winners in this Crypto scheme are lucky criminals.
References:
Reference 1: FTC – Reported crypto scam losses since 2021 top $1 billion, says FTC Data Spotlight.
Reference 3: Coin Gap – Is This The End Of Terra? LUNA Dumped 20% In Latest Crash.
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