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

According to the US agency FTC, there have been over 46,000 cases of cryptocurrency fraud in the United States since 2021, with a massive overall loss. Bitcoin is mostly used for payment.

Jun 4, 2022 - 19:10
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Crypto fraud: Over a billion US dollars in damage in the USA since 2021

The US authority FTC (Federal Trade Commission) alludes to multiple fraud incidents involving cryptocurrencies in a recent study. Since 2021, there have been over 46,000 cases of fraud and harm totaling over one billion US dollars in the United States. In the United States, cryptocurrency scams account for one-quarter of total harm. Much more than with any other payment method.

On average, US citizens lose $2,600 USD for every incidence of fraud, which is usually - in 70% of cases - transferred using Bitcoin.

The cryptocurrency tether comes in second with 10%, and ether comes in third with 9%. Because crypto transfers cannot be accurately tracked or reversed, they are particularly appealing to scammers.

According to the FTC, the majority of people affected fall victim to fraudulent investment offers in which, for example, acquired cryptocurrency is assigned to someone else's wallet rather than their own. 

The FTC also provides fascinating information regarding the ages of the people affected. According to the survey, Americans aged 20 to 49 are three times as likely to be harmed than older persons.

Citizens in their seventies lose substantially more money on average: they lose a median of 11,708 US dollars, which is more than four times the total median.

The crypto fraud problem is only going to get worse in the future. The FTC estimates that the damage will be 33 million in 2019, 130 million in 2020, and 680 million in 2021.

329 million US dollars were also lost in the first quarter of 2022 alone. If similar data emerge in the next three quarters, the damage will almost certainly grow each year.