CFPB identifies the most common bitcoin-scam schemes since 2018

Romantic scams and the pig-butchering scheme have been identified as the most common tactics used by bitcoin scammers. The CFPB said this, according to CFPB.

About 40% of the 8,300 complaints received by the CFPB between October 2018 and September 2022 related to cryptocurrency fraud and scams.

In most cases, attackers staged a romantic scenario to gain the victims’ money.

The pig-butchering tactic was also widely used, involving the creation of an image of a successful crypto trader online with promises of high investment returns.

In third place, scammers impersonate influencers or customer-support staff.

Around 25% of the complaints related to various transactional incidents. Sixteen percent concerned hacks, frozen accounts, identity-verification issues and other technical problems with crypto platforms. Fewer complaints related to the volatility of digital assets.

“Poor customer service is a common thread in cryptocurrency-related complaints. Most reports came from California,” the CFPB said.

The bureau noted that blocking scammers on exchanges often occurs only after a string of suspicious transfers. Users, in the event of a hack, must wait for arbitration to conclude or pursue compensation through class-action lawsuits, without access to services during that period.

Earlier, ForkLog reported that a US resident pleaded guilty to fraud on Silk Road for 50,000 BTC.

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