Crypto Scams Continue To Cost Investors Billions Each Year

On Sep 25, 2022

Internet crime, especially crypto scams, continue to soar costing individual victims thousands of dollars. A new FBI study on Internet crime shows victim losses doubled from 2019 to 2021.

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As cryptocurrency scams become more common, they are also becoming more costly to victims. According to the FBI‘s latest report, crypto scams continue to soar costing individual victims thousands of dollars.

Even though the value of cryptocurrency is far below its high of $68,000 in November 2021, crypto scams are still a growing problem. According to the FBI‘s 2021 Internet Crime Report, $6.9 billion was lost to online scams in 2021, up from $3.5 billion in 2019. Among that $6.9 billion, victims lost $1.6 billion to just crypto scams in the United States.

Crypto Scams Increase During COVID Pandemic

The COVID pandemic proved to be a ripe opportunity for scammers. Looking to make a fast buck, some individuals tried investing their government COVID stimulus money in cryptocurrency, only to be tricked by crypto scams.

Crypto Scam Are Becoming More Sophisticated

What’s also concerning is how sophisticated scammers are becoming. Some crypto scammers build entire websites made to copycat real cryptocurrency platforms. Users who unsuspectingly click on a fake link in social media or an email, are then lured to these copycat sites. Unfortunately, as soon as they attempt to login, they inadvertently give scammers access to their cryptocurrency accounts.

Another sophisticated tactic involves using romance scams to gain the trust of victims and convince them to make fraudulent investments in cryptocurrency.

Victims of romance crypto scams are first contacted via dating apps and social media sites. The scammer gains the victim’s trust by convincing them of valuable cryptocurrency investment or trading opportunities. However, this is all a scam; there are no real profits to be made.

Cyber Victims: Who Is Being Targeted By Cyber Criminals?

Another concerning statistic released in the FBI report is how frequently seniors are targeted by scammers. Seniors aged 60+ were scammed out of $1.68 Billion dollars, followed by adults aged 50-59, for a total loss of $1.26 Billion.

Avoiding Internet Scams

To avoid online scams, it all comes down to protecting your money. Scammers make big promises and make it appear they are with legit companies, but you need to step back and do research. Always do a reverse search using photos, emails, phone numbers, and addresses to verify if the person or entity you are speaking to online is who they say they are.

Here are some other tips that can help protect you from becoming the victim of a cyber scam:

Internet Crime Victims Per State

California 67,095
Florida 45,855
Texas 41,148
New York 29,065
Illinois 17,999
Nevada 17,706
Ohio 17,510
Pennsylvania 17,262
Washington 13,903
New Jersey 12,817
Arizona 12,375
Virginia 11,785
Georgia 11,776
Maryland 11,693
Indiana 11,399
Michigan 10,930
Colorado 10,537
North Carolina 10,363
Missouri 9,692
Massachusetts 9,174
Iowa 8,853
Wisconsin 8,646
Kentucky 7,148
Tennessee 7,129
Oregon 5,954
Minnesota 5,844
South Carolina 5,426
Alabama 5,347
Connecticut 4,524
Louisiana 4,248
Utah 4,242
Oklahoma 4,156
Arkansas 2,745
Kansas 2,693
New Mexico 2,644
Nebraska 2,407
Mississippi 2,170
West Virginia 2,135
Delaware 2,132
District of Columbia 2,103
Puerto Rico 1,923
Idaho 1,882
Alaska 1,787
Hawaii 1,615
New Hampshire 1,487
Maine 1,402
Rhode Island 1,205
Montana 1,188
South Dakota 951
Wyoming 735
Vermont 715
North Dakota 670
Virgin Islands ,U.S. 100
U.S. Minor Outlying Islands 93
Guam 64
Northern Mariana Islands 29
American Samoa 25

Where To Report An Internet Or Cyber Scam

If you have been a victim of a cyber scam, please report it to the FTC. The FTC can help you recover your money and protect you from future scams.

You can also report scams to your state attorney general’s office and the FBI.

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