• In just six months, consumers lost $82 million to cryptocurrency scams, according to the Federal Trade Commission

  • While cryptocurrency values rise, the quantity of money lost to crypto scams continues to rise.

    According to the US Federal Trade Commission, crypto scams cost consumers almost $82 million between October 2020 and March 2021. (FTC).

    The $82 million loss is ten times what was reported a year ago for the same six-month period.

    Crypto frauds, according to the FTC, increase as cryptocurrency prices rise. Bitcoin increased by 490 percent from $10,000 to $59,000 between October 2020 and March 2021. In the same time frame, the price of Ethereum increased from $360 to $1,940.

    “Cryptocurrency aficionados gather online to discuss their common interest. New investors may be keen to get in on the action now that bitcoin’s value has skyrocketed in recent months. The FTC stated, “All of this plays straight into the hands of scammers.”

    Because the FTC’s statistics is based on individuals self-reporting their losses, the true loss may be greater than recorded.

    Others who have been affected Consumers who have reported crypto scams to the FTC are far from the only ones who have fallen victim to them.

    According to a report released this month by the Australian Competition and Consumer Commission, scammers in Australia stole almost $20 million in cryptocurrency payments last year. After bank transfers, crypto was the second most common payment method for scammers, according to the commission.

    The National Crime Agency in the United Kingdom is similarly afraid that crypto acceptance would boost crypto-related crime. The National Crime Agency claimed in its annual report on severe organized crime that increased Bitcoin acceptance might make life simpler for crooks.

    If cryptocurrencies are the way of the future in finance, they are also the way of the future for con artists.

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