New FTC (Federal Trade Commission) statistics indicate that since 2020 October, crypto investors had lost over $80 million in the name of investment scams. You probably understand that scams remain a challenge in the crypto market. Every year, traders lose millions of cash because of fraud activities. FTC stated that about 7,000 consumers reported a crypto scam in the past seven months. Keep in mind that cryptocurrency has been booming during all this time.
Most scam victims age from 20 to 30. The agency declared that the group stated that they lost money through the crypto scams than any other fraud. Cryptocurrency seems to be a hot spot as far as online criminal is concerned. Keep in mind that the victims reported $1,900 as the median loss.
Online Scams Come in Different Forms
FTC reported that investment scams are the most money-making way used by fraudsters to obtain their cryptocurrencies. Remember, scammers would use any method possible to convince you to send your crypto to fake addresses.
They might impersonate prominent businesses of government authorities. Others will take advantage of the buzz in the crypto community. For instance, some traders lost money after Elon’s SNL show, after the scammer faked crypto giveaways. There are cases where scammers lure the victim into paying Social Security Admin. Scammers can also pose as legit exchanges such as Coinbase to trap newbie traders.
FTC stated that scammers use various ways to succeed in the deals. Some will approach you with cryptocurrency offers upon registering with them. Unfortunately, they will direct you to money-draining platforms.
Avoid any claims that a prominent person would multiply your cryptocurrencies and send you back the profits. Be careful with your every undertaking in the crypto market.
Avoiding Cryptocurrency Fraud
You can use these tips by FTC to spot crypto fraud from miles away:
When promised huge returns. As much as you will meet most people telling you that you can earn huge returns overnight, things are never that straightforward in the crypto market. Avoid anything to do with huge guaranteed returns or wealth multiplication in the crypto environment
Cryptocurrency Insistence. Be careful whenever communicating with any individuals or organization that insist you invest in the crypto business. You have the freedom to join the market when you want.