46,000 People Report Crypto Fraud, FTC: Losses Reach IDR 14.4 Trillion

Crypto (Photo: Kanchanara/Unsplash)

JAKARTA - Crypto scams and scams continue to attract cybercriminals. Not a few people report losing their crypto assets. According to a report by the United States (US) Federal Trade Commission (FTC), since the beginning of 2021, there have been more than 1 billion US dollars equivalent to IDR 14.4 trillion in losses due to crypto fraud.

Meanwhile, from January 2021 to March this year, more than 46,000 people filed crypto-related fraud reports with the FTC. The individual who reported the loss in the report was $2,600.

A total of 70 percent of scams use Bitcoin as a payment method, followed by Tether (10 percent) and Ether (9 percent). Ether is the primary currency of choice for Non-Fungible Tokens (NFT), a relatively new crypto market where fraudsters and hackers thrive.

Crypto investment scams were the most common type of fraud reported to the FTC, with losses of around $575 million. Usually, these scams target amateur investors by promising them huge returns in return for their initial investment.

“Investment scammers claim that they can quickly and easily make huge profits for investors. But the crypto investment goes straight to the scammer's wallet," said FTC representative Emma Fletcher in a blog post quoted from Engadget, Saturday, June 4.

There are many ways that cybercriminals can do to commit fraud, one of which is by getting their dates to invest in crypto. It is reported to have had a total loss of 185 million US dollars equivalent to IDR 2.6 trillion.

Many of these scammers reach out to individuals via social media or dating apps. This type of dating app scam is known as hog slaughter, where criminals build fake relationships with victims to trick them into investing in crypto.

It is important to note that the FTC report is only a small snapshot of how many crypto scams actually occur, as the agency relies on direct reports submitted by victims.

The FTC estimates that less than 5 percent of victims of fraud report it to a government entity, and possibly a smaller number report it to the FTC.

As cryptocurrencies become more popular, the number of scams also increases. Blockchain platform chain analysis estimates that the illicit addresses received more than US$14 billion in crypto last year, almost double the amount in 2020.