According to a new bulletin from the United States, the lonely among us are prime targets for cryptocurrency scammers. According to the Consumer Financial Protection Bureau (CFPB).

According to CFPB data, fraud and scams accounted for roughly 40% of the 8,300 crypto-related complaints received between October 2018 and September 2022. Romance frauds, imitation, and a tactic known as "pig butchering" were among the major offenders.

"Crypto-assets are frequently targeted in romance scams," the CFPB wrote in the bulletin.

The "pig butchering" method involves people who pretend to be successful cryptocurrency traders on social media and convince victims to open accounts and make investments that will allegedly earn them returns.

Trying to impersonate social media influencers or customer service representatives from cryptocurrency companies was also a popular tactic, according to the CFPB bulletin. It claims that a lack of customer service options on crypto platforms has opened the door for scammers to impersonate representatives to steal cryptocurrency from customers' wallets.

Transaction issues, such as being unable to execute transactions immediately, were the second-most common cause of crypto complaints received by the bureau.

Other issues noted by the CFPB included cyberattacks, identity verification issues, and crypto platforms' technological issues.

"When consumers are defrauded or have had their accounts hacked, they are frequently told that there is nowhere to turn for assistance," the CFPB said in a statement about the bulletin. The vast majority of crypto-related complaints emerged in California.

In addition to keeping an eye out for the aforementioned scams, the CFPB enabled customers to report cryptocurrency websites or apps that use the Federal Deposit Insurance Corporation name or logo to appear to offer government protections. 

How can we better protect ourselves against phishing attacks in the future? Let us know your thoughts by sharing this article online.

Nov 11, 2022
Digital Lifestyle

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