US Federal Trade Commission warns of cryptocurrency fraud on social media regulation
US Federal Trade Commission warns of cryptocurrency fraud on social media regulation
The US Federal Trade Commission (FTC) has warned that social media are used in investment fraud with cryptocurrencies. "Social media are a tool for fraudsters in investment fraud, especially those with fake cryptocurrency investments - an area that has experienced a massive increase in reports," said FTC.
Federal Trade Commission warns of crypto fraud on social media
The US Federal Trade Commission (FTC) published a "Consumer Protection Data Spotlight" last week, in which the public is warned of fraud, including crypto investment fraud.
The FTC is an independent authority of the US government, the main task of which is the enforcement of civilian US cartel law and the promotion of consumer protection.
"More than 95,000 people reported losses of around $ 770 million by fraud, which was initiated in 2021 on social media platforms," wrote Emma Fletcher, program analyst of FTC. "These losses make up about 25 % of all reported losses by fraud in 2021 and represent an amazing 18-fold increase compared to the 2017 reported losses." She added:
reports make it clear that social media are a tool for fraudsters in investment fraud, especially those with fake cryptocurrency investments - an area that has experienced a massive increase in reports.
"More than half of the people who reported losses through investment fraud in 2021 stated that fraud on social media started," continued the FTC analyst. "Reports to the FTC show that fraudsters use social media platforms to promote fake investment opportunities and even connect directly to people as supposed friends to enable them to invest.
The FTC then gave some advice on how to remain safe on social media. One is to restrict who can see your contributions and information on social media. The agency said that they can also unsubscribe from targeted advertising. Another advice is to check the company from which you want to buy by looking online whether his name has been associated with a fraud or a complaint.
also: "If you receive a message from a friend about an opportunity or urgent money, call it up. Your account may have been hacked - especially if you are asked to pay by cryptocurrency, gift card or transfer.
At the beginning of this month, the FTC warned of cryptocurrency fraud ATMs .
According to the blockchain analysis company Chainalysis, fraudsters collected a record amount of $ 14 billion in cryptocurrency in 2021, which is mainly due to the rise of decentralized financial platforms (Defi). The losses due to crypto -related crime rose by 79 %compared to the previous year, which is due to an increase in theft and fraud, the company said.
What do you think of fraud with cryptocurrency investments on social media? Let us know in the comment area below.
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