Crypto Scams Rampant in the US Too... "23 Billion Won Stolen by Impersonating Musk"

US FTC Releases Report Analyzing Cryptocurrency Scam Crimes
"Losses Soared 1000% Compared to Same Period Last Year Since October"

[Image source=Reuters News]

[Asia Economy Reporter Kim Suhwan] It has been revealed that cryptocurrency investment scams are rampant in the United States as well. The amount of damage caused by cryptocurrency scam crimes in the U.S. from October last year to March this year surged by about 1000% compared to the same period the previous year.

On the 17th (local time), the U.S. Federal Trade Commission (FTC) released a report on cryptocurrency scam crimes, stating, "The cryptocurrency craze has caused a surge in investment scam crimes," and "Cryptocurrency-related scam crimes have sharply increased since October last year."

According to the report, an individual impersonating Elon Musk, CEO of Tesla, approached investors, deceiving them by promising investment in cryptocurrencies that would guarantee multiple times the returns, and through this, embezzled $2 million (approximately 2.3 billion KRW).

Musk had earlier, in February, announced Tesla's purchase of Bitcoin, joining the Bitcoin investment craze, which was credited with driving the rally and attracting more investors.

Additionally, last year, a hacker group hacked official social media accounts of many famous figures including Musk, Jeff Bezos (Amazon CEO), U.S. President Joe Biden, and major companies such as Apple and Uber, posting messages asking users to send Bitcoin to a specific address with the promise of doubling the amount of Bitcoin they currently held. Investors, mistaking these posts as genuine from the account owners, sent Bitcoin to the hackers, resulting in losses amounting to $110,000 (approximately 125 million KRW).

The FTC further stated, "From October last year to March this year, about 7,000 victims have been reported," with total damages exceeding $80 million (approximately 9.1 billion KRW). The number of cases increased twelvefold compared to the same period last year, and the amount of damage surged by nearly 1000%. CNBC noted, "Since the FTC's investigation only compiled officially reported cases, the actual damage could be even greater."

In particular, it was found that young people aged 20 to 49 are more likely to be exposed to cryptocurrency scam damages. According to the FTC report, this age group is over five times more likely to lose money to cryptocurrency scams than the elderly. Similar to South Korea, the U.S. is seeing an increase in young people seeking quick riches through cryptocurrency investments, making them more susceptible to scammers promising high returns.

The FTC also reported that many cases involved fake websites offering investment or mining opportunities to lure investors and then trick them into sending money. There were also instances of impersonation of officials from major cryptocurrency exchanges like Coinbase or government employees such as those from the Social Security Administration, the FTC added.

The FTC analyzed, "Since cryptocurrency is a new investment area, many investors are unfamiliar with it," and "Scammers are exploiting this to deceive investors and steal money."