How much money is lost to cryptocurrency scams every year?

According to the Federal Trade Commission (FTC), cryptocurrency scams cost consumers more than 14 billion dollars in 2022. The previous year, it was $7.8 billion.

The most common type of cryptocurrency scam is the investment scam, where victims are promised high returns on their investment. Other common scams include romance scams, where victims are tricked into sending money to a scammer posing as a romantic partner, and phishing scams, where victims are tricked into giving up their personal information.

In 2022, the amount of money lost to cryptocurrency scams increased even further. According to Chainalysis, a cryptocurrency analytics firm, $14 billion was stolen from cryptocurrency businesses and individuals in 2022. This was the most ever stolen in a single year.

There are a number of reasons why cryptocurrency scams are so common. One reason is that cryptocurrencies are often seen as a way to make quick money. This makes them attractive to scammers, who can prey on victims’ greed. Another reason is that cryptocurrencies are often difficult to trace, which makes it difficult for victims to get their money back.

If you are thinking about investing in cryptocurrency, it is important to be aware of the risks of scams. There are a number of things you can do to protect yourself, such as:

  • Do your research before investing in any cryptocurrency.
  • Only invest money that you can afford to lose.
  • Never give out your personal information to anyone you don’t know and trust.
  • Be wary of any investment that promises high returns with little or no risk.
  • If you think you may have been scammed, report it to the FTC.