FTC Data Reveals Big Jump In Crypto Investment Scams, Losses Totaling $80M
A new consumer protection data spotlight from the U.S Federal Trade Commission (FTC) revealed that consumers lost more than $80 million to cryptocurrency investment scams since October 2020.
Data compiled from the last quarter of 2020 and the first quarter of 2021 showed that almost 7,000 investors were swindled by scammers who lured them into bogus crypto investment opportunities.
“Sites use fake testimonials and cryptocurrency jargon to appear credible, but promises of enormous, guaranteed returns are simply lies. These websites may even make it look like your investment is growing. But people report that, when they try to withdraw supposed profits, they are told to send even more crypto – and end up getting nothing back.”
The median amount lost to the investment scams and reported by these consumers was $1,900. According to the FTC, this figure is about twelve times the number of reports and nearly 1,000% more in reported losses compared to the same period earlier.
This year has seen a turnaround in the cryptocurrency scene as the hype around digital assets has spiraled. This has seen scammers taking advantage and cash in on the buzz, thereby luring people into bogus investment opportunities.
