Crypto continues to be a trendy thing for the people who enjoy the thrill (and anxiety) of losing money at any given moment. And much like gambling, it can be addictive—a fact that scammers take advantage of. Cryptocurrency scams can happen in all kinds of ways. Scammers might set up fake websites that look like popular crypto sites in an attempt to get innocent people to send them money. They might also prey on people’s fears of missing out on an investment with massive returns by creating a fake early investment opportunity and pitching it to people online. See More-->
Cryptocurrency has some key traits that make it attractive to scammers: It is relatively unregulated and difficult to recoup once lost; it is wildly popular, fueled in part by celebrity endorsements; and it is not well understood by the general public. The study states that the cryptocurrency market offers new opportunities for tried-and-true investment frauds such as Ponzi schemes and fraudulent ICOs (initial coin offerings), particularly given the development of new currencies and the lack of protections that government regulation has made available to more traditional investors.
$384,000 lost by man in cryptocurrency scam
(CBS NEWSPATH) -- Millions of investors have jumped into cryptocurrencies like Bitcoin, and scam artists are trying to capitalize on all the buzz.
Brandon Larsen recently downloaded an app he thought was related to the website he uses for trades. But the app was a fake, and all the money he put in vanished. Larsen lost $384,006. “I've shed a lot of tears, I'm not gonna lie," he says.
Christopher Leach with the Federal Trade Commission says these types of scams have skyrocketed and Americans have lost more than $80 million in cryptocurrency scams between October 2020 and March 2021, a 1,000% increase from the previous year.
SEE MORE: https://www.kmov.com/news/man-loses-384-006-in-cryptocurrency-scam/article_4deb0222-ceaf-11eb-9af1-f31ba03fe4ae.html
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Brandon Larsen recently downloaded an app he thought was related to the website he uses for trades. But the app was a fake, and all the money he put in vanished. Larsen lost $384,006. “I've shed a lot of tears, I'm not gonna lie," he says.
Christopher Leach with the Federal Trade Commission says these types of scams have skyrocketed and Americans have lost more than $80 million in cryptocurrency scams between October 2020 and March 2021, a 1,000% increase from the previous year.
SEE MORE: https://www.kmov.com/news/man-loses-384-006-in-cryptocurrency-scam/article_4deb0222-ceaf-11eb-9af1-f31ba03fe4ae.html
(210617)
Cryptocurrency scams rose 1,000 percent in the past year and cost consumers at least $80 million, FTC says.
Uber-rich people have touted the speculative investment, making others feel like fools if they don’t get in on the game. Tesla mogul Elon Musk has been a champion of cryptocurrency, although he backed off bitcoin mining recently, citing environmental concerns.
Scammers know that many people suffer from “FOMO,” or the fear of missing out. This is the kryptonite for unsophisticated investors.
The FTC said many victims reported being lured to sophisticated websites offering an opportunity to invest in cryptocurrencies. People set up accounts using real cryptocurrencies, which would of course be stolen. The sites use fake testimonials and cryptocurrency jargon to appear credible or show that their investments were growing. However, when people tried to withdraw the nonexistent profits, they were told to send even more cryptocurrency, Fletcher said.
Even the tried-and-true romance scam has evolved to include cryptocurrency. But instead of getting lovestruck individuals to fork over cash, scammers sweet-talk them into cryptocurrency investments. The FTC said about 20 percent of the money reported lost through romance scams since October 2020 was sent in cryptocurrency.
Crooks are also using the Social Security number con to collect cryptocurrency. People are told their Social Security number will be “suspended” because of criminal activity. Or they are threatened with arrest. To clear up the issue, victims are told they have to pay a fee in cryptocurrency.
Source: https://www.washingtonpost.com/business/2021/05/18/ftc-cryptocurrency-scams/
Scammers know that many people suffer from “FOMO,” or the fear of missing out. This is the kryptonite for unsophisticated investors.
The FTC said many victims reported being lured to sophisticated websites offering an opportunity to invest in cryptocurrencies. People set up accounts using real cryptocurrencies, which would of course be stolen. The sites use fake testimonials and cryptocurrency jargon to appear credible or show that their investments were growing. However, when people tried to withdraw the nonexistent profits, they were told to send even more cryptocurrency, Fletcher said.
Even the tried-and-true romance scam has evolved to include cryptocurrency. But instead of getting lovestruck individuals to fork over cash, scammers sweet-talk them into cryptocurrency investments. The FTC said about 20 percent of the money reported lost through romance scams since October 2020 was sent in cryptocurrency.
Crooks are also using the Social Security number con to collect cryptocurrency. People are told their Social Security number will be “suspended” because of criminal activity. Or they are threatened with arrest. To clear up the issue, victims are told they have to pay a fee in cryptocurrency.
Source: https://www.washingtonpost.com/business/2021/05/18/ftc-cryptocurrency-scams/