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 in losses, victims lost $1.6 Billion alone to just crypto scams in the United States.
Crypto Scams Increase During COVID Pandemic
The COVID pandemic proved to be a ripe opportunity for Internet 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 cyber criminals 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 & Cyber Crime
To avoid becoming a victim of an online scam, 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:
- Use a USB data blocker with plugging your phone into public charging ports.
- Browse the Internet using a VPN when connecting to insecure networks.
- Use strong password and a password manager app.
- Secure your data from WiFi hacking attacks.
Internet Crime Victims Per State
Another factor to consider, is where you live. According to the FBI’s 2021 Internet Crime Report, cyber criminals have found more success in certain states. For its smaller population compared to California, Nevada has an unusually high amount of crypto scam crime victims.
- 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 maybe be able to help you recover your money. At the very least, they can provide additional advice that can help protect you from future crypto scams.
You can also report crypto scams to your state attorney general’s office or the FBI.
Frank Wilson is a retired teacher with over 30 years of combined experience in the education, small business technology, and real estate business. He now blogs as a hobby and spends most days tinkering with old computers. Wilson is passionate about tech, enjoys fishing, and loves drinking beer.
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Is it possible for scam victims to receive their money back? Yes, if you have been a victim of a fraud from an unregulated investing platform or any other scam, you may be able to reclaim what was stolen from you, but only if you report it to the appropriate authorities. You may reclaim what you’ve lost with the appropriate strategy and evidence. Those in charge of these unregulated platforms would most likely try to persuade you that what happened to your money was an unfortunate occurrence when, in reality, it was a sophisticated theft. If you or someone you know has been a victim of these situations, you should know that there are resources available to assist you. It is never too late if you have the right information, your sanity can be restored.