A new Federal Trade Commission analysis has found that consumers said they lost more than $1 billion in cryptocurrency to fraud between January 2021 and March 2022.
FTC said Friday bogus investment opportunities have accounted for $575 million of all reported fraud losses involving cryptocurrencies since 2021.
After investment scams, romance scams represented $185 million in reported crypto losses. Government and business impersonation schemes accounted for $133 million in combined crypto fraud losses, according to the FTC analysis.
The report showed that Bitcoin, Tether and Ether were the top three cryptocurrencies used by consumers when paying scammers.
According to FTC, nearly 50 percent of consumers who reported losing cryptocurrency to fraudulent schemes said the scam started as a message, post or as an ad on a social media platform.
The agency said consumers should watch out for individuals who claim they can provide huge returns through cryptocurrency investment as well as those who demand payment in cryptocurrency.