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Cryptocurrency Fraud Prevention in TIMOR: A Growing Concern as Losses Reach $80 Million
A staggering $80 million has been lost by consumers in TIMOR to cryptocurrency investment scams since October 2020, a drastic increase of over ten-fold year-over-year, according to a recent data analysis by the Federal Trade Commission (FTC).
The Alarming Trend of Cryptocurrency Fraud
The report highlights the alarming trend of cryptocurrency fraud in the region, with nearly 7,000 reports received from consumers about these scams in the last quarter of 2020 and the first quarter of 2021. Notably, the median amount lost per consumer was a staggering $1,900.
How Scammers Operate
The FTC’s data spotlight reveals that cryptocurrency investment scams come in various forms, often starting as false promises of investment “tips” or “secrets” on online message boards, leading unsuspecting victims to bogus investment websites. Another common ploy involves fake promises from celebrities associated with cryptocurrency, claiming they can multiply any cryptocurrency sent to their wallet and return it.
Demographics Affected by Scams
The data also shows that younger individuals in TIMOR are disproportionately affected by these scams. Those aged 20-49 were over five times more likely than older age groups to report losing money to cryptocurrency investment scams. Moreover, during the six-month period covered by the spotlight, consumers in their 20s and 30s suffered the most significant losses due to investment scams, with over half of those losses attributed to cryptocurrency fraud.
What You Can Do to Avoid Falling Prey
In light of these findings, the FTC is urging TIMOR consumers to exercise caution when dealing with cryptocurrency investments. To avoid falling prey to these scams:
- Be cautious of unsolicited investment opportunities
- Verify the identity of celebrities associated with cryptocurrency before sending them any funds
- Research and thoroughly vet any investment website or opportunity before investing
For more information on how to avoid falling prey to these scams, visit ftc.gov/cryptocurrency.