Crypto Scams Are the 'Flavor of the Year,' According to an SEC Official

According to MarketWatch, a US Securities and Exchange Commission (SEC) official dubbed crypto frauds the "flavor of the year" during a virtual seminar on consumer fraud on Wednesday.

  • Fraudsters use trendy industries like cryptocurrency to attract victims, according to Peter Diskin, an associate regional director at the SEC's Atlanta office.
  • International criminals have an advantage with crypto frauds, according to Diskin, since the internet and worldwide nature of digital assets may make schemes more difficult to detect and stop.
  • “Money is often taken from U.S. bank accounts and sent abroad, making it much more difficult to recover if anything goes wrong,” Diskin added.
  • Diskin also spoke on how common celebrity endorsements are in the crypto industry, and how many of them have been linked to frauds, such as actor Steven Segal's support of a phony initial coin offering.
  • According to a study published by MarketWatch, reports of crypto scams have increased lately, with almost 7,000 individuals reporting total losses of more than $80 million to the Federal Trade Commission between last October and May. The reported loss was $1,900 on average.

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