Due to blockchain technology, people tend to believe that cryptocurrencies and digital assets are quite a safe passage, but scams make them skeptical.
As per the recent Federal Trade Commission (FTC) report, crypto investment scams are on a high currently. The report published on Thursday stated that since last year, over 40,000 investors from the American region alone have reported losing more than $1 billion worth of capital in cryptocurrency scams. The report also mentioned that most of these scams were done using the top most popular crypto, bitcoin (BTC), followed by Tether (USDT) and Ethereum (ETH).
According to the same report, the number of cryptocurrency losses that were reported last year was almost sixty times from their count in 2018. This is quite significant growth in just three years that needed to be taken under concern. Further, the report also outlined that despite many digital coins witnessing massive drops in their trading prices over the past several months, several cryptocurrencies were there that still made profits and gained popularity continuously.
The report wrote that most of the reported losses made through crypto fraud that began over social media platforms are investment scams. In fact, since last year, there were about $575 million worth of crypto frauds reported all over. These were the cases that reported at FTC, and they were about the bogus investment opportunities that are far more than any similar or other types of fraud.
It stated that the stories that people share regarding these scams describe it as a perfect storm, where false promises of a get rich quick scheme that resonate with the limited understanding or people about crypto, knowledge, and experience.
Further, it said that these investment scammers would also tell individuals to obtain a large return on their investment in quite a short period of time, however, these schemes turned out to be nothing more than an investment that goes straight to the wallet of the scheme scammer. To get rid of these schemes, people need to have knowledge and experience in crypto space to get aware of the scams even before getting into them.
Source: https://www.thecoinrepublic.com/2022/06/04/whats-the-reason-that-billion-dollar-scams-counts-fake-crypto-investments-at-the-top/