Crypto scams are becoming increasingly prevalent on social platforms like X and YouTube. A report by Merkle Science states that losses from such scams have amounted to over $500 million in 2024.
Rise of Memecoin Scams
According to Merkle Science, memecoin scams are a major source of losses on social media platforms. Scammers are mastering social engineering techniques such as impersonation and manipulation. They gain access to celebrities' personal data, hack their accounts, and post links to purchase fake memecoins. Investors flock to buy these memecoins and suffer losses once the memecoin hits the target valuation.
Social Media as a Hub for Crypto Scams
The report also reveals that 75% of crypto scams occur on the X platform. Despite hosting industry leaders and celebrities, X is failing to protect users from crypto threats. YouTube accounts for 19% of these scams, with a significant portion involving rug pull schemes, and phishing attacks making up 44% of total scams.
Awareness Efforts
The CFTC recently launched a national awareness campaign to warn people about relationship and investment scams, which frequently happen on social media, dating apps, and through misdirected texts. Platforms like X, YouTube, and Telegram have also reported major crypto scams numerous times. Despite the maturing crypto industry, scammers are growing more sophisticated in exploiting social platforms' vulnerabilities.
The increasing frequency of crypto scams on social platforms necessitates more effective protection measures and user awareness. It is crucial to remain vigilant and critically assess information from unverified sources.
