More Victims Of Crypto Investment Scams Have Emerged Since January 2021

The level of scams and fraudulent activities in the cryptocurrency industry has increased notably over the past year. A recent report published by the US Federal Trade Commission (FTC) noted that since the beginning of 2021, over $1 billion worth of crypto assets have been lost to scammers. The report noted that the fraudulent activities affected about 46,000 people.

70% Of The Amount Was Received In Bitcoin

FTC stated that the victims paid nearly 70% of the total amount in Bitcoin (BTC), the largest crypto asset by market capitalization. Tether (USDT) came second with 10% of the amount, while the affected people paid 9% of the amount in Ethereum (ETH). The report also revealed that most of the crypto scams occurred on social media platforms.

Since the start of 2021, about $95 million has been lost to scams related to business imposters while $183 million worth of crypto has been lost to romance fraud. But investment-related crypto scams pulled the highest amount, with $575 million worth of crypto assets lost.

The scammers deceive people through fake investment websites

Most investment scams follow a similar pattern. They claim they can get their targets a huge amount of returns from the volatile crypto market. In many cases, they provide fake profits made from bogus investments, deceiving the investors to believe they are genuine.

Also, they con people through fake investment websites and apps that track the growth of their crypto. To make people fall into the scheme, they give a small test withdrawal to some people, who would now invest more, hoping to gain a larger profit.

As crypto-assets keep growing in popularity, scammers have found more ways to dupe investors who want to profit from the volatile digital assets market. The report also noted that people aged between 20 and 49 have fallen victims to these scams more than people in other age brackets.  Security researchers and experts have warned investors to be wary of online investment opportunities in the crypto industry. They should practice basic security checks and ensure that an investment firm is duly registered with the right authorities before they consider placing their funds in their care.

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