A Chula Vista single mother fighting leukemia was a victim to a cryptocurrency scam costing her $42,399.22 on Friday and vocalizes her story as a cautionary tale to warn others.
Along with millions of viewers, Tuba Kazan watched a YouTube video lead by what was believed was the co-founder of the cryptocurrency Ethereum. The host directed investors to a site to help Ethereum go global. The single mother sent 10 cryptos to the account.
According to Kazan, she had invested her life savings in the cryptocurrency. Her goal was to acquire funds for her children, a house and cancer treatment.
Unlike U.S dollars deposited into bank accounts, cryptocurrency accounts are not insured by the government. According to the Federal Trade Commission (FTC), there is a possibility for investors to lose their money completely if cryptocurrency is stored with a third-party company. The government has no obligation to step in and help get your money back.
The value of a cryptocurrency rapidly fluctuates depending on many factors, including supply and demand. An investment that’s worth thousands of dollars today might be worth only hundreds tomorrow. If the value decreases, there is no guarantee it will rise again.
A report released by the FTC cites more than $80 million have lost investments to cryptocurrency. This is an increase more than ten-fold over year compared to previous years. In the last quarter of 2020, nearly 7,000 reports were received by consumers regarding cryptocurrency scams.
Individuals within the ages 20-49 are up to five times more likely to fall for these scams than older age groups according to the FTC. The report highlights individuals between the ages of 20-30 have lost more money to investment scams than any other form of fraud.
Spotting a Scam:
The FTC notes these scams manifest themselves through tips, secrets, and online message boards that may lead people to fake web pages. Another way scams take place are promises with a celebrity associated with cryptocurrency will multiply and will return to your wallet.
One red flag for a scam is anyone who says you have to pay by cryptocurrency or by wire transfer, gift card.There is almost no other way to get your money back once a payment is made through these methods.
The Federal Trade Commission urges people to report scams immediately at ReportFraud.ftc.gov.
How To Report Cryptocurrency Scams
Report fraud and other suspicious activity involving cryptocurrency to
- the FTC at ReportFraud.ftc.gov
- the Commodity Futures Trading Commission (CFTC) at CFTC.gov/complaint
- the U.S. Securities and Exchange Commission (SEC) at sec.gov/tcr
- the cryptocurrency exchange company you used to send the money
