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Crypto fraud complaints overview:
- Who: The Consumer Financial Protection Bureau posted a complaint bulletin last week that revealed an increase in consumer complaints revolving around fraud and scams in cryptocurrency.
- Why: Consumer complaints include fraud and scams in the crypto market that they say have led to frozen accounts, lost savings and transaction problems.
- Where: The complaints are nationwide.
The Consumer Financial Protection Bureau (CFPB) revealed in a complaint bulletin last week that it received a growing number of consumer complaints concerning fraud and scams in the cryptocurrency industry.
The CFPB said crypto fraud and scam complaints have become a “significant problem” for crypto-asset markets.
“This issue appears to be getting worse, as fraud and scams make up more than half of ‘virtual currency’ complaints received thus far in 2022,” the CFPB says in its complaint bulletin.
“Our analysis of consumer complaints suggests that bad actors are leveraging crypto-assets to perpetrate fraud on the public,” CFPB Director Rohit Chopra says in a statement. “People should be wary of anyone seeking upfront payment in crypto-assets, since this may be a scam. We will continue our work to keep the payments system safe from fraudsters targeting Americans.”
Consumers reported several different types of cryptocurrency scams to the CFPB, including romance scams, scams where bad actors impersonate influencers or customer service reps and what is known as “pig butchering,” according to the agency.
Pig butchering is when “fraudsters pose as financial successes and spend time gaining the victim’s confidence and trust, coaching victims through setting up crypto-asset accounts.”
CFPB warns cryptocurrency assets a ‘common target’ for hackers
The CFPB warned that cryptocurrency assets are a “common target” for hackers who focus on older consumers and servicemembers in addition to general cryptocurrency investors.
In total, crypto fraud complaints from consumers “describe a wide range of account access and dispute resolution issues,” including “platform bankruptcies where their assets are indefinitely frozen, weeks-long waits due to account access problems, hours-long platform outages, difficulty executing transactions and poor customer service,” according to the CFPB.
In related crypto news, in September, cryptocurrency trading company Wintermute disclosed it was the victim of a security breach that compromised one of its trading wallets and led to around $160 million worth of digital assets being stolen.
Are you a victim of crypto fraud? Let us know in the comments!
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5 thoughts onCrypto fraud complaints up in recent years, Consumer Financial Protection Board says
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