The crypto market is fraught with risks related to multi-modal fraud and theft.

According to report A recent published by the US Federal Trade Commission (FTC), more than 46,000 people have already lost more than $1 billion in cryptocurrency to scammers since the beginning of 2021.

According to the report, investment scams account for the majority of lost cryptocurrencies ($575 million).

This method pays off for people who are blinded by false promises of quick and easy money to send their money directly to the scammers’ wallets.

Some scammers may allow investors to withdraw a small portion of the funds in order to gain confidence before tricking their victims into transferring more funds.

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Romance scams are responsible for $185 million in cryptocurrency losses.

Scammers usually try to convince their potential victims of fake wealth before offering them investment advice.

Scammers impersonating companies and government officials account for the remainder ($133 million).

Social media plays a major role in facilitating scams.

According to a Federal Trade Commission (FTC) report, nearly half of the people who lost their cryptocurrency to fraudsters since the beginning of 2021 were using apps like Instagram, Facebook and Telegram.

Losses reached $329 million in the first quarter of 2022, which is nearly half of what was stolen throughout the entire year of 2021 ($680 million).

The average single loss is currently $2,600.

Fraudulent actors made 60 times more money in 2021 than in 2018, confirming the increasing scope of crypto-related frauds.

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