Social media blamed for $1 Billion in Crypto Scams

The $1 billion USD that was lost due to crypto scams has been laid at the feet by the United States Federal Trade Commission (FTC).

The report was published Friday and found that 2021’s loss was six times higher than in 2018. FTC called the combination of social media and cryptocurrency relationship “a combustible mixture for fraud”. Investment fraud accounted for $575 million of total $1 billion.

The report states that the amount of cryptocurrency scammed had already reached half the value of 2021 as of March 31st. According to the FTC, more than 46,000 victims of fraud using cryptocurrency between January and March 2022 were reported.

Scammers have been reported to pose as border patrol officers, businesses, officials from the government, or potential romantic partners.

According to the commission, “The

top cryptocurrencies

People claimed that they used to pay Bitcoin scammers
Tether (70%)
Ether (10%)
(9 per cent).”

“Crypto features are appealing to scammers. This may explain why reported losses in 2021 were almost sixty times higher than in 2018. It is not possible for banks or any other central authority to flag suspicious transactions and try to stop fraud from happening.

Cryptocurrency transfers cannot be reversed. Once the money is gone, it’s impossible to get it back. Many people don’t know how crypto works.

These considerations aren’t just for crypto transactions; they all fall into the hands scammers.

Reports indicate that social media and crypto are a combination of fraud and combustible. Nearly half of those who lost crypto to scams since 2021 claimed it began with a post, a message, or ad on a social networking platform.

Key insight

David Merino, a cryptocurrency, digital and crypto entrepreneur added that the FTC was right. There are many threats to your money and scammers are continually preying upon potential victims. This is partly why we created high-frequency trading algorithms. It is used by over 30,000 people because it is efficient, sustainable, and transparent.

“We wanted the market to be safe from the huge risk of foreign exchange. We created a continuously benefiting, audited system that is safe for investors and keeps the capital under control.

He spoke out about the dire situation of victims and the future for cryptocurrency, which is a subject of growing scams.

“I served 12 years in the military, and have struggled tremendously financially. It is sickening that people would want to exploit the weak by denying them knowledge. Don’t just transfer crypto. Your account is yours. You have complete control over where your money is going. Before you move it, think about why.

Social media is ultimately used by these people to communicate. This is where increased communication and ease of use has its downsides. However, the positives of web3, blockchain, and crypto far outweigh their negatives. Fiat is often swindled heavily, and we wouldn’t consider it an ill way of financing. However, we must ensure that our systems are secure so that the vulnerable can be protected with crypto.

“I have now started thirteen businesses, which has increased my success. There are many opportunities. I cannot stress this enough. Be careful.”

The FTC provided many tips to avoid crypto scams. Here are some signs to watch out for:

Scammers are the only ones who can guarantee big profits.

It is impossible to guarantee that cryptocurrency investments will make big bucks.

No one legitimate will ask you to purchase cryptocurrency to solve a problem or protect your money. It’s a fraud.

Online dating should never be mixed with investment advice. It’s a scam if a new partner asks you to send crypto to them or teaches you how to invest.

According to the report, people between 20 and 49 years old were most likely victims of cryptocurrency scams.

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