The report found that nearly half of people who reported losing digital currencies to a scam claimed it started with an ad, post, or message on a social media platform. Nearly four out of every ten dollars lost to a scam that began on social media were lost in crypto.
Instagram, Facebook, WhatsApp and Telegram were listed as the top social media platforms aiding these cryptocurrency scams. According to the FTC, social media is a potent environment for crypto-fraud.
About $575 million of all losses were linked to digital currency fraud involving “bogus investment opportunities.”
Among the cryptocurrencies used and financial losses, the average reported loss for an individual was $2,600, and bitcoin, tether, and ether were the top cryptocurrencies used by people to facilitate payments to fraudsters.
While the popularity of cryptocurrencies has increased, the positive trend has also attracted fraudsters and crypto criminals, who now see the sector as a new way to launder and make money. Along with the fact that the crypto world is largely unregulated, fraudulent activities will continue to flourish.
The sources for the piece include an article in Reuters.