According to FTC reports, since 2021, over 46,000 people have reported losing a combined $1 billion to crypto scams. The median individual loss amounted to $2,600.
Bitcoin (70%), Tether (10%), and Ether (9%) were the most popular cryptocurrencies used to pay scammers, as reported by scam victims.
Almost half of the crypto scams started with a post, an ad, or a message on a social media platform. The top platforms scammers used were Instagram (32%), Facebook (26%), WhatsApp (9%), and Telegram (7%).
And most crypto scams on social media were investment scams.
Namely, since 2021, people have lost $575 million on fraudulent investment opportunities. Due to their limited knowledge of crypto, people were mostly fooled by false promises of quick cash.
Scammers would claim they can generate huge returns for investors in a short period of time. However, once people invested their money, they’d realize it was all fake.
Romance scams take second place on the list of crypto scams occurring on social media. Since 2021, people have lost $185 million due to such scams. The median individual crypto loss due to romance scammers amounted to $10,000 in cryptocurrency.
Next in line were business and government impersonation scams, amounting to $133 million in crypto losses.
Finally, it’s important to note that cryptocurrency scams are currently more common among younger people. According to reports, those in their 30s have been the most affected, as 35% of all their fraud losses were linked with crypto scams.