Feds: 40% Of Crypto Complaints Are Due To “Scams”

November 10, 2022 Business, Crime

Just out via press release:

Today, the Consumer Financial Protection Bureau (CFPB) released a new complaint bulletin that highlights complaints the CFPB received related to crypto-assets. Consumers most commonly reported being victimized by frauds, theft, account hacks, and scams.

Consumers also had issues with executing transactions and transferring assets between exchanges. Many consumers had issues with accessing funds in their account due to outright platform failures, identity verification issues, security holds, or because of technical issues with platforms. Poor customer service is a common theme across crypto-related complaints.

“Our analysis of consumer complaints suggests that bad actors are leveraging crypto-assets to perpetrate fraud on the public,” said CFPB Director Rohit Chopra. “Americans are also reporting transaction problems, frozen accounts, and lost savings when it comes to crypto-assets.

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.”

From October 2018 to September 2022, the CFPB received more than 8,300 complaints related to crypto-assets, with the majority of them received in the past two years. For about 40% of crypto-asset complaints handled since October 2018, consumers listed frauds and scams as the main issue.

Various transactional issues with crypto-assets accounted for about 25 percent of complaints, while issues with assets not being available when promised made up about 16% of complaints.

Hit the link to learn more about a particular crypto scam that the fraudsters call “pig-butchering.”



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