Losses due to Crypto Scams are increasing

  • With the increasing popularity and price of BTC, ETH, and Dogecoin grows, so does the number of online crypto scams linked with them
  • In a review of the data, Emma Fletcher, a FTC program analyst, stated that all of it plays directly into the hands of the fraudsters since BTC is an unfamiliar ground for many individuals, they blend into the scene with statements that might appear reasonable
  • Crypto seems promising, but investment in it should be made cautiously. Musk subsequently tweeted, adding that it should be considered speculation at this time in an attached video clip

With the increasing popularity, and price of BTC, ETH, and Dogecoin grows, so does the number of online frauds linked with them. According to the Federal Trade Commission, Americans have lost more than $80 million in bitcoin investment scams since October, a 1000 percent increase over autumn of 2019. People aged 20-39 were particularly badly impacted, accounting for over half of all reported losses, according to the FTC. According to FTC data released this Monday, the agency has received roughly 7000 allegations of crypto investment scams since last autumn, with a median loss of $1,900. As bitcoin values rise, celebrities endorse Dogecoin, and more Americans try to comprehend what cryptocurrency is all about, the losses mounting.

In a review of the data, Emma Fletcher, a FTC program analyst, stated that all of it plays directly into the hands of the fraudsters, since BTC is an unfamiliar ground for many individuals, they blend into the scene with statements that might appear reasonable. Digital currency has served as a basis for many of the world’s financial and business stories. Although many experts believe in BTC to be a highly volatile form of money, it hit a new high of over $50,000, in February. 

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Whole  Foods, Visa, Starbucks are just a handful of well-known merchants who take BTC. Elon Musk, the CEO of Tesla, stated earlier this year that his business would accept BTC as payments for vehicles from Tesla, only to backtrack the week. Kayne West, Snoop Dogg, Paris Hilton, etc., have endorsed digital currencies. The number of ATMs that accept crypto, has also increased across the country. Despite this, many traditional investors have shied away from crypto investments because of wild price volatility. Dogecoin, for example, dropped 36% earlier this month, when Musk referred to digital currency as a hustle while presenting in the Saturday Night Live.

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Crypto seems promising, but investment in it should be made cautiously. Musk subsequently tweeted, adding that it should be considered speculation at this time in an attached video clip. According to the FTC, scammers are coming up with new techniques to dupe individuals into making bogus crypto investments. One form of scam directs people to fraudulent websites by offering investing advice over the internet. In another con artist’s  masquerade as celebrities, such as Elon Musk , and get customers to transfer bitcoin by promising that the celebrity will contribute to their investment. Fraudsters may also impersonate a government entity or a cryptocurrency related to a company, according to the FTC. 

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Andrew Smithhttp://thecoinrepublic.com
Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing

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