(WTNH) – New data from the FTC is shedding light on scammers and the crypto-craze. Since the start of 2021, more than 46,000 people reported losing over $1 billion in crypto to scams.
“People hear stories about other people making lots of money. They don’t want to miss out,” said Emma Fletcher, a senior data researcher for the FTC.
People between the ages of 20 to 49 are more than three times as likely as older people to lose money, according to new data.
Jeffrey Vaulx said he was duped after seeing what he thought was a legitimate post on a friend’s social media page about making a great deal of money by investing in crypto.
He said that he reached out, set up an account, and made an initial $500 investment and saw a huge jump.
“In my account, it was $4,900. And I was like wow, I mean, $4,900 dollars and I was so excited,” said Vaulx “And he was like ‘how would you like this money to be sent?'”
Then, Vaulx was told he needed to send a withdrawal fee, and even more fees after that to send a check.
“In all, I lost $1,200. And I felt embarrassed,” he said.
Vaulx said that only after all this happened did he discover that the post was fake, and his friend had been hacked.
“There’s also no bank, no centralized authority to flag suspicious transactions and stop fraud before it happens,” said Fletcher.
It’s also important to remember that crypto transfers can’t be reversed once the money is gone. Once it’s sent, there’s no going back.