Consumers in the world’s largest crypto market, the US, have lost more than $470-million in crypto scams in the first quarter of this year – a bigger loss than the next five payment methods combined.
This is the revelation from the latest research by CryptoPresales.com which says despite tighter regulations and improved blockchain tracking tools, crypto crime is on the rise.
There are several ways consumers can lose money in crypto scams. One of the most common and costly are fake investment platforms that promise big profits, but disappear after taking their money. Many also fall victim to phishing schemes or social media impersonators who trick them into sharing wallet credentials or sending crypto to fraudulent addresses. Others get tricked by romance or giveaway scams, where scammers use sweet talk or fake celebrity promotions to convince them to send money that’s never coming back.
Altogether, these scams are draining hundreds of millions of dollars from the pockets of US consumers. Even more worrying, the trend is only getting worse.
According to US Federal Trade Commission data, crypto scams have cost US consumers a staggering $471,9-million in Q1 – 20% more than the next five payment methods combined.
Far below, fake payment apps ranked as the second costliest fraud method with $118-million in reported losses, four times less than crypto scams. Credit card and wire transfer scams ranked third and fourth with around $85-million in reported losses. Debit and gift cards followed, with $54-million and $53-million respectively.
Despite taking more money from US consumers than the following five payment methods combined, crypto scam losses have also surged over the past year. In Q1 2024, Americans reported $336-million lost to crypto scams – 40% less than in the same period this year and highlighting the scale of this alarming trend.
The year-over-year (YoY) jump between Q1 2024 and Q1 2025 is just the tip of the iceberg when it comes to rising crypto scam losses. Data from the US Federal Trade Commission shows that crypto scams have skyrocketed over the past five years with quarterly losses increasing thirty-fold. In Q1 2020, US consumers reported about $16,5-million in losses. By 2022, that figure had surged to $363-million and stayed at similar levels the following year.
Although 2024 saw a slight dip of around $30-million in quarterly losses, the trend reversed by the end of the year with scam losses surpassing $400-million for the first time. By the end of March 2025, the total jumped by another $71-million – marking the largest quarter-over-quarter increase on record and pushing the five-year total loss to $5,6-billion.