Crypto scammers stole over $10 billion from Americans in 2022

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Americans lost $10.3 billion to online scams in 2022, with crypto investment losses accounting for around 25%.

Crypto fraud increased by 183% in 2022

The FBI report showed that online scams related to crypto investments soared to $2.57 billion in 2022 from $907 million in 2021, an increase of 183%.

Data collected by the Internet Crime Complaint Center (IC3), a law enforcement and national security agency, revealed that $10.3 billion was lost to online scammers in 2022, compared to $6.9 billion in 2021.

The FBI also noted an increase in investment in cryptocurrencies as scammers took advantage of the birth and exploration of the industry by new users.

According to the report, most of the victims reporting crypto scams were between 30 and 49 years old.

How crooks stole billions

The FBI has highlighted the five most common investment scams in 2022, including cash mining. Here, a victim links their cryptocurrency wallet to a fake cash mining service, allowing the scammer to cleanse their assets.

The scammers also hacked into social media accounts to gain access to a victim’s profile before targeting their friends and using their trust to perpetrate a fake investment offer.

In some cases, the FBI noted that scammers could also contact a real estate agent with an offer to buy an expensive home using crypto. When the agent agrees to join, the scammer convinces them that they own property worth millions.

Fraudsters have also posed as celebrities and made fake friendships with victims using fake investment opportunities.

In some cases, fraudsters have also found fake jobs. In this arrangement, the victim was enticed to apply for non-existent vacancies in investment firms. However, they received investment advice instead of being offered a job. Their goal was to ultimately rob hopeful candidates.

Crypto Hacks and Project Failures in 2022

In 2022, crypto frauds and related activities cost investors nearly $3.5 billion. A report titled “Cryptocurrency Scams of 2022” by Privacy Affairs highlighted the effect of fraud on the market. Considering the series of failing stablecoins, collapsing exchanges, and crypto hacks, 2022 could be the worst year in crypto.

Significant events of crypto winter 2022 include the fall of popular exchange FTX in November, which affected crypto prices and impacted several blockchain businesses. Previously, LUNA and UST, an algorithmic stablecoin, crashed.

In early 2023, crypto banks including Silvergate Bank and Silicon Valley Bank (SVB) closed shop and experienced a bank run. This sowed fear and panic in the market, causing cryptocurrency prices to spike.

Besides banks, several blockchain companies have also reported billions of dollars in losses due to security breaches and exploits. The most recent attack involves the loan protocol, Euler Finance, which was hacked for over $197 million.

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