Crypto Scams Continue to Haunt Investors Globally

This crypto craze is one the rise globally with more people opting to invest in it. The crypto trade has made many people multimillionaire in the recent past. However, on the contrary, it also proved to be a disaster for tens of thousands of investors, who found themselves in scams and lost their crypto assets.

Since the beginning of 2022, things haven’t changed at all. Scams involving cryptocurrency, which surged last year, are still going strong.

Crypto Scams Continue to Haunt Investors Globally

According to a new report from the Federal Trade Commission, over 46,000 people have reported losing over $1 billion in cryptocurrency to scammers since the start of 2021. (FTC). This is greater than any other payment method, with one out of every four dollars being lost.

As per the research, Bitcoin, the king of crypto, stablecoin Tether, and Ether, the second-largest crypto by market value, were the top cryptocurrencies users stated they used to pay scammers.

In this regard, FTC stated,

crypto has become “an alarmingly common method for scammers to get peoples’ money.”

“Crypto has several features that are attractive to scammers, which may help to explain why the reported losses in 2021 were nearly sixty times what they were in 2018,”

Reasons behind the Crypto Scams:

To begin with, there is no bank or other centralised authority that can flag questionable transactions and try to prevent fraud before it occurs. Secondly, whenever any crypto transaction is made, it can not be reversed. Last but not the least, people are not completely aware regarding how crypto works.

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