TIMOR SEEKS TO PREVENT CRYPTOCURRENCY FRAUD AS LOSSES SOAR
Cryptocurrency-Related Scams Reach Alarming Proportions
According to a Federal Trade Commission (FTC) analysis, consumers have lost over $1 billion to scams involving cryptocurrencies from January 2021 through March 2022. The report reveals that cryptocurrency has become the preferred payment method for many scammers, with nearly one-quarter of reported losses paid in cryptocurrency.
Most Common Types of Scams
The majority of reported losses involved bogus cryptocurrency investment opportunities, totaling $575 million since January 2021. These scams typically promise unsuspecting investors huge returns by investing in their schemes, but consumers ultimately lose all their money.
Other significant losses reported by consumers include:
- Romance scams: scammers target individuals with false claims about fraudulent activities or government investigations, and demand that they convert their money to cryptocurrency to protect it.
- Business/government impersonation scams: scammers pose as businesses or government agencies and convince victims to invest in fake schemes or pay for non-existent services.
Social Media a Breeding Ground for Scams
Social media is a common platform used by scammers to target unsuspecting consumers. Nearly half of consumers who reported cryptocurrency-related fraud said it began with an ad, post, or message on social media platforms.
Younger age groups are more likely to fall victim to these scams, with those aged 20-49 over three times as likely to report losses.
Red Flags to Watch Out For
To avoid falling prey to these scams, consumers should be cautious of:
- Anyone guaranteeing profits or big returns by investing in cryptocurrency;
- Those who require payment in cryptocurrency; and
- Love interests wanting to show them how to invest in cryptocurrency or send them cryptocurrency.
** Authorities Urge Vigilance**
As the threat of cryptocurrency fraud grows, authorities in Timor are urging consumers to be vigilant and report any suspicious activity. With losses reaching alarming proportions, it is essential for consumers to be aware of these scams and take necessary precautions to protect themselves.