Cryptocurrency has always been a currency of choice for cybercriminals when demanding ransomware payments from companies, But it’s also quickly becoming the payment method of choice for scammers targeting everyday citizens.
According to a recent Federal Trade Commission analysis, more than 46,000 people reported losing a combined $1 billion in cryptocurrency to scams between January 2021 and March 2022. Cryptocurrency made up a quarter of all dollars reported lost — more than any other kind of payment method demanded by fraudsters.
Since 2021, more than $575 million of all reported cryptocurrency fraud losses were around fake investment opportunities where scammers promise huge returns for upfront crypto investments.
Government and business impersonation scams accounted for $133 million in stolen crypto funds. Romance scams caused at least $185 million in losses.
Steve Belcher was caught in a crypto scam through a dating app. He says he lost $1.6 million, his life savings.
“it was so well put together,” Belcher said. “It’s devastating. I mean, emotionally, physically, there was days that I didn’t want to get out of bed.”
Often, victims — including those who may not understand how crypto works — will be directed to send a payment directly to a scammer’s wallet, where it cannot be easily recouped or returned by enforcement agencies.
“With regard to crypto, the rule is this: If you are in possession of the actual chain, if you’re in possession of the actual code,…
