And those numbers likely represent a small fraction of the total losses, since most of the crimes go unreported, according to Emma Fletcher, the FTC senior data researcher who wrote the report.
Investment scams promising swift and easy paydays account for the bulk of the crypto fraud, totaling $575 million in losses. Fraudsters frequently lure victims on social media, then show their investments making fake gains. In some cases, the FTC found, investors successfully complete “test” withdrawals, convincing them the arrangement is sound and encouraging them to plow in more money that they are then unable to recover.
“Given that investment scams are really driving this, it’s very important for people to understand that any promises of huge returns, or that your investments can be quickly multiplied, are obviously a scam,” Fletcher said. “No return on a crypto investment is guaranteed.”
