Namely, the published report of the FTC showed that in 2021, people reported a loss in the total value of more than a billion dollars that they lost due to crypto fraud. From January 2021 to March this year, more than 46,000 individuals filed a cryptocurrency fraud report with the agency. The average individual loss in the reports was $ 2,600.
Most frauds were committed with the most popular cryptocurrencies, so a total of 70 percent of frauds involved Bitcoin as a method of payment, followed by Tether (10 percent) and Ether (9 percent). Ether is the main currency of choice for NFT, a relatively new crypto market that was immediately attacked by hackers, he writes Engadget.
Also, cryptocurrency fraud was the most common type of fraud, valued at $ 575 million. The victims of this type of fraud are mostly amateur investors, who are promised big profits after the initial investment in cryptocurrency.
To the surprise of many, “romantic scams” are the cause of more than $ 185 million in losses. Many fraudsters use this method, and search for victims through social networks and dating applications. Fraudsters here most often pretended to be romantic relationships with victims who would eventually be persuaded to invest in cryptocurrencies, with which they would then disappear.
It is important to note that the FTC report is only a small indication of how much crypto fraud has indeed occurred, given that the agency relies on direct reports submitted by victims.