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Financial Services Law Insights and Observations

FTC says consumers lost more than $1 billion to crypto fraud

Federal Issues Digital Assets FTC Cryptocurrency Consumer Finance Fraud Consumer Protection

Federal Issues

On June 3, the FTC reported that consumers lost over $1 billion to fraud involving cryptocurrencies from January 2021 through March 2022. The FTC’s recent Consumer Protection Data Spotlight found that cryptocurrency is becoming the payment of choice for many scammers and that most reported cryptocurrency losses involved fake investment opportunities (totaling $575 million in reported losses since January 2021). The spotlight stated that nearly four out of every ten dollars reported lost to a fraud originating on social media was lost in crypto, far more than any other payment method. Following losses related to cryptocurrency schemes, the next largest losses involved romance scams ($185 million) and business and government impersonation scams ($133 million collectively).

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