It was found that young to middle-aged people are more likely to be a target for scammers. Source: Freepik.
The Federal Trade Commission (FTC) released their report which detailed over 46,000 Americans lost more than US$1 billion to digital currency scams since 2021.
According to the article, the median loss for an individual who’s scammed is US$2600 (A$3600) with Bitcoin, Tether and Ethereum being the most common cryptocurrencies people are scammed from. These figures are six times the amount they were in 2018, something they say is inevitable as digital currencies grow in popularity.
People who were scammed say it was promoted to them on social media either through a message, ad, or post with Facebook, Instagram, and WhatsApp the top three platforms where people were taken advantage of. The FTC said there are certain things about crypto that make it especially illustrious for defrauders.
“There’s no bank or other centralized authority to flag suspicious transactions and attempt to stop fraud before it happens. Crypto transfers can’t be reversed – once the money’s gone, there’s no getting it back.
“Most people are still unfamiliar with how crypto works. These considerations are not unique to crypto transactions, but they all play into the hands of scammers.”
Investment scams were the biggest reason people lost their money with over US$500 million taken since 2021. Romance scams came in second to claim US$185 million with business and government imposters coming in third and fourth.
In a surprising statistic, people aged 20 to 49 were three times likely than older age groups to have reported a crypto scam loss. People in their 30s were hit hardest.
Bringing it back home, according to the Australian Competition and Consumer Commission (ACCC), Aussies have lost over $113 million in crypto scams since the beginning of 2022.
Speaking to NewsCop earlier in the year, Cyber Security expert and USC lecturer Dr Dennis Desmond mentioned some ways people could protect themselves against scammers.
“For crimes where crypto is used as the profit of the scam or fraud, and not the target of the fraud itself, education and assistance are the best protective measures,” he said.
“Those who are not as technologically savvy should receive education and assistance from the government and their local councils about the kinds and frequency of fraud where victims are encouraged to purchase or transfer cryptocurrencies.
“Relatives should be aware of fraud involving seniors to include romance scams, tax scams, investment scams, ransom fraud, gaming scams, and other kinds of scams where both fiat currency and cryptocurrencies are involved.”
