Klever
  • Home
  • Global
  • Exchange
  • Wallet
  • Education
  • NFTs
  • Announcements
  • Opinions
  • Marketcap
No Result
View All Result
  • Login
  • Register
Klever News
  • Home
  • Global
  • Exchange
  • Wallet
  • Education
  • NFTs
  • Announcements
  • Opinions
  • Marketcap
No Result
View All Result
Klever News
Home Opinions
crypto scam

Crypto users lost over $1 billion in scams since 2021, says Federal Trade Commission report

The Federal Trade Commission (FTC) reports that users have lost more than $1 billion as a result of a lack of awareness about crypto since 2021 alone

by Jagdish Kumar
June 13, 2022
in Education, Global, Opinions
Reading Time: 4 mins read
3k
A A
0
Share on FacebookShare on Twitter

Even though crypto has been in existence since 2009, the major traction came in 2018, when new crypto users started eying it as an alternative to traditional finances. But, this has its own drawback.

As a result, people became interested in crypto where they could make good returns; however, only a few understood the market and booked profits.

You might also like

Klever joins Web3 Domain Alliance to advance blockchain naming ecosystem

Klever joins Web3 Domain Alliance to advance blockchain naming ecosystem

February 22, 2023
7.4k
Klever Wallet: A Secure Solution for Managing Your Crypto Assets

Klever Wallet: A Secure Solution for Managing Your Crypto Assets

February 14, 2023
7.4k

In this case, various platforms were used to promote cryptocurrency and get more users to their projects, but this is where customers were scammed.

Users were new to crypto, so they were unable to analyze and understand the projects they invested in. On social media platforms, there were many advertisements promising 10x to 1000x returns in a few days. As a result, new users invested, with no knowledge of crypto, and, in return, were scammed.

Since 2021, crypto users have lost $1 billion worth of investments. According to a report released by the FTC on 3 June 2022, over 46,000 people have lost over $1 billion as a result of cryptocurrency scams. 

Adding further, the report said that a user on average has lost $2600 in 2021 till March 2022. For every dollar invested, one dollar was lost in a scam.

Among the cryptos in which users have been scammed, Bitcoin (BTC) has a share of 70%, followed by Tether (USDT), a stablecoin, and Ethereum (ETH) and 1% includes other cryptocurrencies.

In the FTC report, it was explained that because cryptocurrency is still in its infancy, no centralized authority or bank can flag suspicious transactions, thereby preventing fraud before it occurs. Crypto has become a very attractive place for scammers due to the lack of awareness among users.

As soon as the users send the money, there is no way for them to get it back. It is this feature that scammers exploit. 

Since 2018, crypto scams have increased by nearly 60 times. The report found that 50% of users had found out about the crypto projects via online advertisements, a message on social media, or a post on the platform.

Platforms where users saw the post, and advertisements are Instagram which accounts for 32%, followed by Facebook with 26%, WhatsApp with 9%, and Telegram with 7%.

What are investment scams?

The scammers post fake investment opportunities and ask users to deposit crypto in return for double or more crypto within a few days.

Since 2021, over $575 million have been lost using this method and it is the most popular one, as many users do not cross-check the information the scammers provide.

Once the investment is made by users, all the investment goes to scammers’ wallets. In addition, scammers are so clever that they also give users the ability to track their investments, but they only do it to scam the user. Some users may even be allowed to withdraw some crypto, but if they want to withdraw all, more crypto will be required. As the users were able to withdraw funds, they fell into the trap and never got their full account back. 

What are romance scams?

Millions of people log on to dating apps and social networking sites to meet potential partners and end up sending money, as scammers approach in such a way that users cannot resist sending cryptocurrency.

This is the second most used method to scam crypto users, where users have lost $185 million since 2021. On average, a user has lost more than $10,000 in this type of scam. 

What are Business and government impersonation scams

Under this, a person impersonates a business/bank representative and drops you a message that user’s account is at risk and the user will be told to follow a process and send crypto to the QR code to secure the bank account. 

In the case of government officials, the scammer tells the users that their account has been frozen as it was part of drug trafficking investigations, and the user needs to send crypto to reverse the order and when the users send the crypto, all the assets are gone within seconds without the user knowing that, he/she only transferred the crypto to scammers wallet.

The report also said that people in the age group of 20 – 49 years are likely to lose three times the currency than the older age group. People in their 30s are the hardest hit, with 35% more susceptible to these scams.

However, the average loss to users in this older age group is around $11,708, which is the highest among all age groups, the FTC report added.

The report lists three major points that any crypto user must always note, which include:

  • 1. That no cryptocurrency investment will ever guarantee profits;
  • 2. Never mix online dating with any investment advice, if someone is asking for crypto online, it is nothing but a scam;
  • 3. No bank or organization will ask you to buy crypto and send it to solve any problem.

As traction towards various crypto projects grows, cryptocurrency has begun to spread. In reality, crypto is just like traditional finance and share markets, which are subject to market risks. Although there are exceptional cases where people have earned many folds, it can happen in any field or industry.

Think clear, be Klever…

Tags: cryptocrypto scamsscams
Advertisement Advertisement
Previous Post

KleverChain sub tokens: here comes the KDA

Next Post

Will Bitcoin surpass gold in the next decade?

Jagdish Kumar

Jagdish Kumar

Reporting & writing on crypto & blockchain for the past few years. A content eagle, journalist & writer with a passion to explore new technologies that can change human lives. Joined Klever to make Crypto simple. Follow me on Twitter @TokenBharat or email me at jagdish@klever.io

Related Stories

Klever joins Web3 Domain Alliance to advance blockchain naming ecosystem

Klever joins Web3 Domain Alliance to advance blockchain naming ecosystem

by Klever
February 22, 2023
0
7.4k

We are excited to announce that Klever has recently joined the Web3 Domain Alliance, a group dedicated to promoting the...

Klever Wallet: A Secure Solution for Managing Your Crypto Assets

Klever Wallet: A Secure Solution for Managing Your Crypto Assets

by Isabela Bellumat
February 14, 2023
0
7.4k

With so many options available, it can be difficult to determine which wallet is the best choice for your digital...

The Rise of Decentralized Autonomous Organizations: Transforming the Future of Business and Society

The Rise of Decentralized Autonomous Organizations: Transforming the Future of Business and Society

by Warren Manuel
February 10, 2023
0
7.3k

Imagine a world where businesses and organizations operate with complete transparency, security, and autonomy. A world where intermediaries and central...

Revolutionizing Investment: Can AI be Your Next Financial Advisor?

Revolutionizing Investment: Can AI be Your Next Financial Advisor?

by Warren Manuel
February 9, 2023
0
7.3k

Investment and financial management have come a long way in the digital age. With the advent of Artificial Intelligence (AI),...

Next Post
bitcoin vs gold

Will Bitcoin surpass gold in the next decade?

Stablecoin Bill Passes in Japan

Stablecoin Bill Passes in Japan

Please login to join discussion
Download Klever Wallet Download Klever Wallet Download Klever Wallet
ADVERTISEMENT

Recommended

Ethereum

Coin of the Week: Ethereum (ETH)

November 14, 2021
7.5k
Tron (TRX)

Coin of the Week: Tron (TRX)

May 19, 2022
7.5k

Popular Story

  • Stand a chance to win your share of 10,000 KLV

    Stand a chance to win your share of 10,000 KLV

    8360 shares
    Share 3344 Tweet 2090
  • Test drive Klever Wallet, K5 and Win 1000 KLV & 1 KFI

    7033 shares
    Share 2813 Tweet 1758
  • Bitcoin battles back from record losses to $21,000

    5915 shares
    Share 2366 Tweet 1479
  • Klever showcases its blockchain ecosystem on a Time Square billboard

    5360 shares
    Share 2144 Tweet 1340
  • K5 adds new blockchain and KleverSafe support in the latest Android version

    5072 shares
    Share 2029 Tweet 1268

Follow us on Twitter

Klever News

Join the Klever community
Growing together we are stronger.
Be sure to follow us on social media to stay up to date.

Categories

  • Announcements
  • Coin of the Week
  • Education
  • Exchange
  • Games
  • Global
  • Hardware Wallet
  • Market Updates
  • NFTs
  • Opinions
  • Sponsored
  • Wallet
Download Klever Wallet Download Klever Wallet Download Klever Wallet
ADVERTISEMENT

Recent News

Klever joins Web3 Domain Alliance to advance blockchain naming ecosystem

Klever joins Web3 Domain Alliance to advance blockchain naming ecosystem

February 22, 2023
Klever Wallet: A Secure Solution for Managing Your Crypto Assets

Klever Wallet: A Secure Solution for Managing Your Crypto Assets

February 14, 2023
  • Sponsored Content
  • Advertise
  • Contact Us
  • RSS Feed

© 2022 Klever News - Premium Crypto news & insights by Klever Finance.

  • Login
  • Sign Up
No Result
View All Result
  • Home
  • Global
  • Exchange
  • Wallet
  • Education
  • NFTs
  • Announcements
  • Opinions
  • Marketcap

Welcome Back!

Sign In with Google
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Google
OR

Fill the forms below to register

*By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version