Crypto fraud: Over a billion US dollars in damage in the USA since 2021

In a recent report, the US authority FTC (Federal Trade Commission) refers to the numerous fraud incidents in connection with cryptocurrencies. According to this, there have been more than 46,000 cases of fraud and damage of over one billion US dollars in the USA since 2021. Cryptocurrency scams account for a quarter of total damage in the United States. Significantly more than with any other payment method.

Mostly bitcoin and investment scams

On average, US citizens lose 2,600 US dollars with each case of fraud, which in most cases – in 70 percent of cases – is more than 2,600 US dollars Bitcoin to be transfered. Currency follows in second place with ten percent tether, and third place with nine percent ether. The crypto transfers can neither be precisely tracked nor reversed, which makes them particularly interesting for fraudsters.

According to the FTC, most of those affected fall for fraudulent investment offers in which, for example, purchased cryptocurrencies are not assigned to their own wallet but to someone else’s. Love scams come in a clear second place, followed by fake news from alleged companies or government agencies.

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The FTC also provides interesting details about the age of those affected. According to the report, US citizens between the ages of 20 and 49 are three times more likely to be affected than older people. The latter lose significantly more money on average: Citizens in their seventies lose a median of 11,708 US dollars, more than four times the overall median.

Going forward, the crypto fraud problem is likely to only get worse. According to the FTC, the damage was still 33 million in 2019, 130 million in 2020 and 680 million in 2021. In the first quarter of 2022 alone, 329 million US dollars were also lost. If similar figures come about in the next three quarters, the damage is likely to double again each year.

Source: FTC via golem