US Regulator Sounds the Alarm over Increasing Crypto Fraud


US Federal Trade Commission has sounded the alarm on crypto fraud as scammers exploit the rise of digital currencies to steal from older generation.

May 18, 2021, | AtoZ Markets – The number of victims affected by cryptocurrency scammers has grown since October 2020, the US Federal Trade Commission reported on its official website.

More than $80 million lost to crypto fraud

According to the regulator, in eight months the cybercriminals obtained more than $80 million from nearly 7,000 people through fraudulent schemes. At the same time, the declared average loss is $1,900. According to the commission’s calculations, the activity of fraudsters has increased by almost 1000% in recent months.

US Regulator Sounds the Alarm over Increasing Crypto Fraud

Source: ftc.gov

According to the regulator, the sharp rise in the bitcoin rate attracted new investors to the market. However, hype and hype plays into the hands of scammers. Among the most famous cases of fraud, experts identified:

  • fake investment websites;
  • distribution of free cryptocurrencies on behalf of celebrities;
  • online dating.

Fake Elon Musk giveaways enriched scammers by $2 million

The commission claims that according to preliminary data, in just the last six months, scammers masquerading as Elon Musk have enriched themselves by $2 million in fake crypto giveaways.

The researchers found that since October 2020, people between the ages of 20 and 49 are five times more likely to report losses from crypto investment fraud than older people. Notably, a group of people in their 20s and 30s reported that they lost much more money from cryptocurrency scam than from any other type of scam.

Read also: Instagram Influencer Allegedly Scammed Followers Out of $2.5M BTC

At the same time, people aged 50 and over were much less likely to report losses as a result of digital money fraud. However, when this group did lose money, the average reported loss was several times higher and amounted to $3250.

The regulator also found out that scammers often impersonate the Coinbase cryptocurrency exchange. However, what exactly are the fraudulent schemes around the crypto exchange remains unknown.

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