Arab Press

بالشعب و للشعب
Friday, Mar 29, 2024

Over $2M Stolen By Elon Musk Impersonators In Crypto Scams, Says FTC

Over $2M Stolen By Elon Musk Impersonators In Crypto Scams, Says FTC

Cryptocurrency scams rose 1,000 percent in the past year and cost consumers at least $80 million, FTC says. People in their 20s and 30s reported losing far more money to crypto investment cons than on any other type of fraud.
Uberrich 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.

Despite being highly volatile, the price of cryptocurrencies has surged to record levels.

Finally, cryptocurrency enthusiasts have a great command over social media platforms, enabling them to relentlessly plug the investment, which is pushing up prices. Scammers know that many people suffer from “FOMO,” or the fear of missing out. This is the kryptonite for unsophisticated investors.

Add all those forces together and you have a tenfold increase in reported losses in the past 12 months from victims of cryptocurrency-related investment scams, according to new data from the Federal Trade Commission (FTC).

“This trend is really striking,” said Emma Fletcher, a program analyst with the FTC’s Bureau of Consumer Protection. “It’s pretty alarming and concerning. So we definitely want to bring attention to this issue so that people can take steps to make sure that this doesn’t happen to them.”

Consumers have reported losing more than $80 million to cryptocurrency investment scams, the data shows. The FTC said it received nearly 7,000 scam reports in the last quarter of 2020 and the first quarter of 2021, 12 times the number reported over the same period a year earlier. The median amount consumers lost in the scams was $1,900. That is nearly 1,000 percent more in reported losses compared to the same period a year earlier, the agency said.

Let me put the loss for cryptocurrency scam victims in perspective. The median loss reported to the FTC for fraud generally is about $400, Fletcher said.

Adults 20 to 49 were more than five times more likely than older age groups to report losing money on cryptocurrency investment scams, the FTC said. People in their 20s and 30s lost more money to investment scams than any other form of fraud, and more than half of their losses were the result of crypto cons. Although people 50 and older were far less likely to report losing money on cryptocurrency scams, their losses were higher — a median of $3,250.

Devotees say bitcoin, Dogecoin and other cryptocurrencies will someday revolutionize the way electronic transactions are handled. It’s super cool to be in cryptocurrency.

“There’s also a lot of high pressure to this market where people are like, ‘You’ve got to get in now. Don’t wait. Don’t question it,” said Joe Rotunda, director, enforcement division at the Texas State Securities Board. “But investors need to be on guard.”

In March, the North American Securities Administrators Association (NASAA) listed cryptocurrency-related investment scams as a top investor threat. Investigate before you invest, Rotunda said. Check out any investment offerings with your state securities regulator.
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.

In other schemes, people were told the more money they put in to climb investment tiers, the bigger returns they could expect.

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.

Another scam involves pitches using celebrity names. You give the celebrity-backed investment some of your cryptocurrency and you supposedly get back more than you put up. Consumers reported losing more than $2 million to Musk impersonators since October, the FTC said.

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.

If you’re promised a guaranteed return, run. If you’re told that your deposit of cryptocurrency will be multiplied, don’t take the bait. “The cryptocurrency itself is the investment,” Fletcher wrote in a report about the surge in the scams. “You make money if you’re lucky enough to sell it for more than you paid. Period. Don’t trust people who say they know a better way.”

Ric Edelman, the founder of Edelman Financial Engines, said it was inevitable that criminals would exploit the interest in cryptocurrencies.

“Scams involving bitcoin are no surprise, any more than the fact that as soon as we invented cars we started having car accidents,” he said. “So drive defensively and be just as defensive when investing.”
Comments

Oh ya 3 year ago
Crypto is just like going to the casino. 2 weeks ago it was 64g now its 49 g. So these people just lost theirs faster than the rest are going to. A fool and his money are soon parted

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
PM Modi Announces Opening Of New CBSE Office In Dubai
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Facebook and Instagram Ban Iran's Supreme Leader
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
The Saudi Kingdom's Ultimatum to Israel: A Win-Win Peace with Saudi Arabia and the Arab World, or a Lose-Lose Continued Occupation and Endless Conflict
Biden condemns anti-Arab hate after WSJ opinion piece calls Dearborn ‘jihad capital’
Turkey Releases Seven Hostages Captured by Pro-Gaza Gunman
Arab Parliament Commends Women's Contributions to Societal Development
British and Hungarian Foreign Ministers visited Lebanese leaders to stress the importance of enacting UN Resolution 1701
Yemen's Houthis Say They Targeted British Merchant Vessel In Red Sea
Donald Trump Nominated for Nobel Peace Prize for 'Historic' Middle East Policy
US lawmakers approve F-16 jet sale to Turkey following NATO expansion support
Saudi Arabia Climbs 25 Places in World Bank's National Statistics Indicator
Tourism Growth in Saudi Arabia Fuels Advancements in the Hospitality Industry," Says Rotana Official
Houthi Rebels Request Departure of UN Staff from Yemen, Including US and UK Personnel, within a Month
Modi Inaugurates Hindu Temple on Site of Demolished Mosque in India
Over 25,000 Deaths in Gaza Amid Israeli Offensive
Escalating Clashes in Gaza as Israel Distributes Leaflets to Assist in Locating Hostages
Turkey's First Astronaut Set to Launch for International Space Station Today
Head of Palestinian Investment Fund Warns More People May Die of Hunger Than War in Gaza
Palestinian Envoy Criticizes UK for Alleged 'Double Standards' in Policies Toward Israel
Morocco to Lead UN Human Rights Council in 2024
Is artificial intelligence the solution to cyber security threats?
Egypt has been identified as the leading military force among Arab nations and ranks 15th globally
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Iranian Nobel Laureate Narges Mohammadi Receives Additional Prison Sentence
"Gazans Urge Israeli Forces to Target Hamas in Leaked Audio"
Biden States US and UK Airstrikes on Houthis Were a 'Defensive Action
Large Pro-Palestine Rally in London as Gaza Conflict Hits Day 100
South Africa Urges World Court to Halt Israeli Actions in Gaza
×