Firstly, there is no bank or other centralized authority to flag suspicious transactions and attempt to stop fraud before it happens.
Secondly, when the crypto transfer is made it can’t be reversed.
Thirdly, people are still unfamiliar with how crypto works.
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The report also singles out ads and social media as the perfect pair that makes life easier for scammers.
„Aproape jumătate dintre oamenii care au raportat că au pierdut cripto-ul în urma unei înșelătorii din 2021 au spus că a început cu o reclamă, o postare sau un mesaj pe o platformă de socializare.”
“During this period, nearly four out of every ten dollars reported lost to a fraud originating on social media was lost in crypto, far more than any other payment method.”
In order, the scammers were luckiest on Instagram (32%), followed by Facebook (26%), WhatsApp (9%), and Telegram (7%).
The most common type of crypto fraud was investment scams, followed by romance — with $185 million in reported cryptocurrency losses since 2021, which is nearly one in every three dollars reported lost to a romance scam during this period scams — business imposters, and then government imposters.
Since 2021, $575 million of all crypto fraud losses reported to the FTC were about bogus investment opportunities.
“The stories people share about these scams describe a perfect storm: false promises of easy money paired with people’s limited crypto understanding and experience. Investment scammers claim they can quickly and easily get huge returns for investors. But those crypto ‘investments’ go straight to a scammer’s wallet,” the report said.
As of romance scams, scammers reportedly brag about their supposed wealth and sophistication: “Before long, they casually offer tips on getting started with crypto investing and help with making investments.”
The median individual reported crypto loss to romance scammers is $10,000, according to the FTC.
The regulator says here are the things to know to avoid crypto cons:
Only scammers will guarantee profits or big returns. No cryptocurrency investment is ever guaranteed to make money, let alone big money. Nobody legit will require you to buy cryptocurrency. Not to sort out a problem, not to protect your money. That’s a scam. Never mix online dating and investment advice. If a new love interest wants to show you how to invest in crypto, or asks you to send them crypto, that’s a scam.