The Federal Trade Commission posted a warning about cryptocurrency investment scams. The information includes descriptions of how crypto scammers work – and how to avoid being scammed.
According to the FTC, “scammers are taking advantage of people’s understanding (or not) of cryptocurrency investments, and how they work. And younger people are losing big.”
The FTC’s new data spotlight shows that since October 2020, nearly 7,000 people reported losses to bogus cryptocurrency investments, adding up to more than $80 million. People ages 20-49 were more than five times more likely than other age groups to report losing money on those scams.
Cryptocurrency investment scams can happen in many ways, but they’re all full of fake promises and false guarantees. Scammers might post investment sites that look real, but you’ll find you can’t withdraw the money you’ve “invested”. Other pretend to be celebrities – like a would-be Elon Musk – doing giveaways with claims of multiplying any cryptocurrency you send. Scammers also use online dating sites to sweet-talk people into bogus crypto investments in the name of love.
The FTC stated that people in their 20s and 30s have lost more money on investment scams than on any other type of fraud. And more than half have reported investment scam losses – $35 million – were in cryptocurrency.
Personally, I think these scammers are disgusting people who intentionally take advantage of those who aren’t very knowledgable about cryptocurrency. It is even worse when they go on dating websites for the purpose of scamming a lonely person out of their money. The FTC points out that if you need to report a cryptocurrency scam you can visit Reportfraud.ftc.gov.