Crypto Scams Continue to Threaten Investors Globally
The crypto craze is spreading over the world, with more people choosing to invest in it. Many people have just become multimillionaires thanks to the cryptocurrency market. On the other hand, it turned out to be a disaster for tens of thousands of investors who fell victim to scammers and lost their crypto holdings.
Things haven’t altered much since the beginning of 2022. Scams involving cryptocurrencies, which grew in popularity last year, are still active. Since the beginning of 2021, over 46,000 people have reported losing over $1 billion in bitcoin to scammers, according to a recent report from the Federal Trade Commission. (FTC). One out of every four dollars is lost, which is higher than any other payment method.
“Crypto has various aspects that scammers find appealing, which may explain why reported losses in 2021 were approximately sixty times more than in 2018,” says the research.
For starters, there is no bank or other centralised authority that can flag suspicious transactions and try to prevent fraud before it happens. Second, once a crypto transaction is completed, it cannot be undone. Last but not least, many people are unfamiliar with how cryptography works.