Minnesota sees unprecedented surge in holiday crypto scams
News | Published on December 17, 2024 at 2:59pm EST | Author: frazeevergas
0A new study shows crypto scams are surging this holiday season and Minnesota ranks No. 19 in the nation, losing a record $75.3 Million last year and No. 18 with 17.1 victims per 100,000 residents.
Inboxes and social media feeds are being flooded with crypto scams exploiting pain points that arise during the holidays. This includes big discounts on gifts and travel; preying on lonely people with romance scams; and offering time-sensitive investment opportunities. Crypto is the currency of choice for scammers as it is harder for authorities to track.
Reverse search company Social Catfish today released a study on the State of Online Scams 2024 using the most recent data from the FBI, FTC and trends from millions of users on its website.
Key Findings:
• Americans lost a record $3.96 billion to crypto scams last year.
• Crypto scams accounted for nearly 33% of the record $12.5 billion lost to all online scams.
• Millennial and Gen-Z online scam victims grew by 10% last year largely due to crypto trading.
• 87% of all investment scams involved crypto.
4 Most Common
Holiday Crypto Scams and How to Avoid Them
1. Holiday Shopping Scams: Fake e-commerce websites that look legitimate advertise huge holiday discounts if customers pay in crypto.
How to Avoid: The URL will be one letter off and will not have “HTTPS” security protocol.
2. Holiday Crypto Giveaways: Well-known companies appear to offer a 10,000 bitcoin giveaway but participants first have to send an amount of crypto to “verify” their wallet. It is a scam.
How to Avoid: Legitimate companies will never ask for money upfront.
3. Holiday Investment Scams: Fraudsters promote crypto holiday investment opportunities promising guaranteed returns only if the person invests right now during the holidays.
How to Avoid: Perform a reverse search to verify the identities of the people involved.
4. Holiday Travel Scams: Scammers advertise vacation packages, hotels, and flights with super low prices if payment is made in crypto.
How to Avoid: Book travel through reputable platforms with a credit card, not crypto.