As the value and popularity of Bitcoin, Ethereum, Dogecoin, and Litecoin grows, so does the spread of crypto scams. The scammers do their best to come up with new sophisticated methods and lure beginners and even seasoned traders into their web of deceptions. Strangely, even with the emergence of companies like Global Fraud Protection that fight against brokers and societies that misappropriate money from depositors, the rapid growth of fraudulent statistics doesn’t stop. The distribution of educational content about trading doesn’t cause the same impressive results as the innovative techniques of scammers bring. According to Federal Trade Commission data, in October 2021, US citizens involved in the crypto scam lost more than $80 million, which is 1000% higher than in the same period last year.
Victims Age Range and Median Loss
Digital money has been in the spotlight in recent years. Many people have shown an interest in the virtual money industry regarding crypto trading as an easy way to make money. Of course, if you have special skills and deep knowledge, you can earn money by speculating in cryptocurrencies. However, in addition to the risks associated with unsuccessful predictions, there are chances of falling into a scam.
According to data provided by the FTC, 44% of scam victims are between the ages of 20-39. The average loss of an individual is estimated at 1900 dollars.
About Different Crypto Scammers Techniques
In total, over the past 2021, scammers managed to steal more than $14 billion worldwide. And this is only the official figure, according to which the number of thefts increased by 79%. Such statistics can negatively affect the reputation and status of cryptocurrencies. However, scammers continue to attack the crypto community. The most popular methods of deception are phishing, classic schemes like pyramids, fake airdrops, and even manipulating the opinion of celebrities.
The main goal of scammers using phishing is to obtain bank and passport data, mobile numbers, passwords, and other information about the victim to misappropriate their money.
Phishing scammers can create fake websites, messenger channels, personal pages on Facebook or Instagram and correspond with potential victims on behalf of a “reliable” company. Advanced scammers can even create fake cryptocurrencies or replicas of the websites of large companies.
The Ponzi Scheme or Pyramid is the oldest scam type used literally everywhere. Usually, scammers offer quick earnings and an incredible increase in your deposit. According to their claims, you receive a commission for using your funds in trading. However, 100% of your profit is the money of other investors spent on fulfilling obligations to you.
As for manipulating the opinions of famous personalities, the most striking example is probably the hacking of the Twitter of Elon Musk, Joe Biden, Barack Obama, and 130 other celebrities. The scammers promised to double the amount sent to their e-wallet, but apparently, this was a fraud. Unfortunately, by the time the social network’s security team removed the posts and rebalanced, people had already sent over $120,000 to nowhere.
By the way, you can learn more about specific fraudulent schemes in Global Fraud Protection honest reviews. For example, we recently revealed Tesler, another masterful scammer.
How to Avoid Crypto Scams In 2022?
Despite the ingenuity of scammers, there are universal tips that will help you avoid any online deception, including crypto scams:
- Don’t send personal data online to people and companies whose reputation and reliability you are unsure of.
- Don’t send payments to unregulated brokers. Before cooperating with an investment company, check it for a reliable financial authority regulation such as FCA, BaFin, ASIC, etc.
- Don’t share your personal data with callers from unidentified numbers, even if the scammer appears to be a representative of your bank.
- Avoid being caught in a romantic scam – don’t send cryptocurrencies to people you only know online.
- Remember that representatives of reliable authorities or banks will never ask you to transfer money to them in cryptocurrencies.
- Avoid companies, online stores, or organizations that accept money only in cryptocurrencies.
The Reasons Why Crypto-Fraud Is on the Rise
In an endless race for success, people who have achieved minimal financial independence seek to find easy ways to get rich. Social media, movies, the music industry, flashy tabloid images – every source of information today states the importance of success, money, and luxury lifestyle to being happy. Global Fraud Protection reminds you that happiness cannot be bought with cash. The best way to avoid being influenced by other people is to acquire knowledge and skills that can not only protect against swindlers but also bring you legitimate income, regardless of any circumstances. However, if you have a negative experience with crypto scammers, please share your story with our managers, who do their best every day to fight against fraudulent organizations!