The FTC Warns Consumers about Crypto Scams
The Federal Trade Commission (FTC) has issued a consumer advisory cautioning that scammers are increasingly demanding payment in cryptocurrencies such as Bitcoin (BTC) and Ether (ETH). The agency offered some pointed words of caution about vendors relying on cryptocurrencies for payments.
Key Points:
- Cryptocurrencies lack legal protections, making it difficult to recover lost funds when sent to scammers.
- Common crypto-related scams include imposter scams, romance scams, and fake job offers that require upfront “fees” in crypto.
- Americans lost $2.57 billion to crypto scams last year.
- The FTC advises consumers to be wary of any demands for crypto payments and report suspicious activity.
The FTC warned that only scammers demand payment in cryptocurrency, and no legitimate business or government agency would require you to pay with crypto. It urged Americans to report any suspicious activity to the FTC’s complaint assistant.
Another Crypto Scam Strikes
As the FTC issued its warning, a 40-year-old Wyoming woman reported losing $8,785 in a cryptocurrency scam. The woman invested through a fraudulent website called Elite Capitals Live, only to realize she had been scammed when she couldn’t withdraw her funds.
Crypto Crimes Declining?
While crypto scams continue to make headlines, there is a lack of consensus on the overall rates of such crimes. Chainalysis reports a 65% drop in crypto inflows to known illicit bodies compared to the same time last year. However, Chainalysis’ head of investigations admitted the company has no proof its software works, leading to some skepticism.
Hot Take: The FTC’s warning highlights the increasing prevalence of crypto scams and the importance of staying vigilant. As the crypto industry grows, it’s crucial for both consumers and regulators to take proactive measures to protect against fraud and ensure the security of transactions.
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