The U.S. Better Business Bureau (BBB) is warning consumers against a sharp rise in cryptocurrency scams.
The Better Business Bureau says cryptocurrency scams have now become the second riskiest in the U.S., noting that “payment made via cryptocurrency that resulted in a monetary loss more than doubled from 2020.”
The consumer advocacy organization released its 2021 BBB Scam Tracker Risk Report that uses data submitted by individuals and businesses to disclose how scams are perpetrated, who is being targeted, and which scams have the greatest impact.
The report states that cryptocurrency scams rose from seventh riskiest in 2020 to the second riskiest scam in 2021. Online purchase scams maintained the top position as the riskiest, accounting for 37.4% of all scams reported last year.
Although cryptocurrency scams made up only 1.9% of the scams reported to the Better Business Bureau, the median dollar loss was $1,200.00 U.S., much higher than the overall median dollar loss of $169 U.S. More than 66% of people reported losing money when targeted by a cryptocurrency scam, the report details.
Founded in 1912, the Better Business Bureau is a private, non-profit organization focused on advancing marketplace trust.
