FTC Reports Consumers Lost $82 Million To Crypto Scams In 6 Months

FTC reports consumers lost $82 million to crypto scams in half a year as we can read more in our latest cryptocurrency news today.

The US Federal Trade Commission or the FTC reports that consumers lost up to $82 million to crypto scams in six months and the rise in crypto scams happened while Bitcoin’s price increased as well. The consumer reported that they lost to crypto scams between October 2020 and March 2021 and the loss is ten times the amount reported for the same six-month period a year ago. The FTC said that scams increased when crypto prices rise and between the said time, BTC recorded a strong 490% increase with Ethereum also increasing $1940 in the same time:

“Cryptocurrency enthusiasts congregate online to chat about their shared passion. And with bitcoin’s value soaring in recent months, new investors may be eager to get in on the action. All of this plays right into the hands of scammers.”

The FTC data relies on the self-reporting consumers so the loss could be higher than reported. Consumers also reported scams to the FTC but they are not the only ones that were actually victims. In Australia, scammers netted up to $20 million in crypto payments as per a report this month by the Australian Competition and Consumer Commission with the commission found that crypto was the second most popular payment method for the scammers after bank transfers.

Bitcoin and other cryptocurrencies were the second most popular payment method for the scammers that targeted the citizens of Australia last year. According to a report released earlier this month by the Australian Competition and Consumer Commission, Australia paid out about $26. 5 million in BTC and other cryptocurrencies to scammers in 2020. The ACC is a regulatory body of the Australian government and has a goal to protect consumer rights, perform industry monitoring, and enforce the fair competition act of Australia.

In the UK, the National Crime Agency go also concerned that crypto adoption will increase crypto-related crimes and the organization’s annual report on serious organized crime, the NCA claimed that the rise in BTC Adoption will make it much easier for criminals. If cryptocurrencies are the future of finance, we can only see more scammers as well.