According to the FTC, the US Federal Trade Commission, social media scams around cryptocurrencies took their toll in 2021. According to data from the institution, more than 95,000 people lost around 770 million dollars because of these scams. This is 18 times more than the losses reported in 2017.
While many specialists agree that the price of Bitcoin will reach $94,000 by the end of 2022, cryptocurrency scams have never claimed so many victims. Faced with this worrying situation, the FTC, the US Federal Trade Commission, has just taken the floor. With this statement, the institution wants warn users against cryptocurrency investment scams that are rampant on social media.
“Social media is a tool for cryptocurrency scammers – an area that has seen a massive increase in reporting,” ensures the FTC. In its latest report published on January 25, 2022 and entitled “Consumer Protection Data Spotlight”, the federal agency provided an update on the damage caused by these scams in 2021.
FTC warns against social media scams
“More than 95,000 people reported losses of approximately $770 billion from fraud initiated on social media platforms in 2021. These losses represent approximately 25% of all reported fraud in 2021 and represent approximately an astonishing increase 18 times the losses reported in 2017″, says Emma Fletcher, an analyst for the FTC’s programs.
According to her, half of those who reported losses from investment scams in 2021 assured that they had been trapped on social networks. “Reports to the FTC show that scammers are using social media platforms to promote bogus investment opportunities, and even to connect directly with people as supposed friends to encourage them to invest. People send money, often cryptocurrencies, because of promises of huge returns, but end up coming back empty-handed,” denounces the expert.
Read also: Crypto.com – the platform is hacked, hackers steal 29 million euros
The FTC’s ways to protect yourself
In his report, the FTC gives some tips to protect yourself from this kind of scams on social networks. In particular, it recommends:
- limit the number of people who have access to your posts and personal information
- opt out of targeted advertising
- find out about the company you are about to purchase a product from (financial or not) by researching online whether or not their name has been associated with a scam or complaints
- take the time to call a friend if you receive a message from them asking for money or discussing an opportunity. It could be a hacked account
As a reminder, according to the Blockchain analysis company Chainanalysis, crimes related to cryptocurrencies brought in $14 billion worldwide in 2021.
Source: FTC
