Alert! US FTC informs possibility of new crypto scam

• The Federal Trade Commission (FTC) issued a fresh fraud notice regarding the usage of cryptocurrency ATMs earlier today.

• According to the FTC, this fraud often comprises a QR code, a crypto ATM, and a fake who urges victims to deposit money.

Scammers in the cryptocurrency space are always attempting to come up with new ways to scam ignorant members of the public. The Federal Trade Commission (FTC) issued a fresh fraud notice regarding the usage of cryptocurrency ATMs earlier today.

According to a recent data study from the Federal Trade Commission, customers have reported losing more than $80 million to cryptocurrency investment scams since October 2020, an increase of more than tenfold year-over-year.

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The FTC lays out the contents of nearly 7,000 reports received from consumers concerning these frauds in the fourth quarter of 2020 and the first quarter of 2021 in a new consumer protection data focus. Consumers reported losing $1,900 on average as a result of the frauds.

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Common criminal psychology

According to the FTC, this fraud often comprises a QR code, a crypto ATM, and a fake who urges victims to deposit money.

While describing the shape the fraud takes, the FTC said that the scammers might portray themselves as governmental authorities, law enforcement officers, or even employees of local power companies.

It went on to say that imposters might try to entice their victims’ attention by pretending to be a love interest or acting as lottery agents and falsely informing them that they’ve won a reward.

How do crypto scams happen?

• Scammers are increasingly using cryptocurrency schemes to lure individuals into transferring money. And they appear in a variety of ways.

• The bulk of bitcoin scams takes the form of extortion letters, online chain referral schemes, or fake investment and business opportunities. 

• Here’s what they all have in common – scammers will request you to transmit money or make a payment in Bitcoin or another cryptocurrency. Your money is gone after you’ve done so, and there’s typically no way to get it back.

2022 will reach an all-time high crypto scams

According to a recent Chainalysis analysis, crypto-related crimes reached a new all-time high in 2021, with illegal addresses getting as much as $14 billion in cryptocurrency.

This is a huge increase from what was observed in 2021, when these addresses contained roughly $7.8 billion, according to the research.

Despite the surge in the value of the crypto owned by criminals, Chainalysis found that they only contributed a small fraction of the total amount of crypto transactions.

According to the research, illegitimate addresses were for 0.15 percent of total transaction volume in the area, down from 0.34 percent in 2017 and 0.62 percent in 2020.

• We urge investors to not open unusual files or download unfamiliar files. Always be alert of which transactions. Do not fall for fast-earning traps or give your personal account information. Always be alert as scammers are coming up with new techniques to scam you.