Get Out of Debt Guy | Smart Debt Solutions for Your Financial Freedom

Today we need to have an honest discussion about the largest growing scam category. Once you finish learning about it in this podcast, you will have to help spread the word to friends, family, and people you know. Don’t let them become a victim.

Although cryptocurrency has yet to become a mainstream payment method, reports to the Federal Trade Commission show it’s an alarmingly common method for scammers to get peoples’ money. 

Since the start of 2021, more than 46,000 people have reported losing over $1 billion in crypto to scams – that’s about one out of every four dollars reported lost.  That’s more than any other payment method. The median individual reported loss? A whopping $2,600. Bitcoin was the most prevalent requested cryptocurrency by scammers. Seven out of ten requests were for Bitcoin, 10 percent were for Tether and 9% were Ether.

As big as those numbers are, they still don’t give us a complete picture of the scam losses with crypto. The vast majority of frauds are never reported so if we are just looking at reported numbers, it is a small percentage of total losses.  

Crypto has several features that are attractive to scammers, which may help to explain why the reported losses in 2021 were nearly sixty times what they were in 2018. 

Losses continue to accelerate. In the first quarter of 2022, crypto scam reported losses are almost $330 million. If it continues at this rate 2022 should end with about $1.5 billion in reported losses.

There’s no bank or other centralized authority to flag suspicious transactions and attempt to stop fraud before it happens. 

Crypto transfers can’t be reversed – once the money’s gone, there’s no getting it back. And most people are still unfamiliar with how crypto works. These considerations are not unique to crypto transactions, but they all play into the hands of scammers.

Reports point to social media and crypto as a combustible combination for fraud. Nearly half the people who reported losing crypto to a scam since 2021 said it started with an ad, post, or message on a social media platform.

During this period, nearly four out of every ten dollars reported lost to a fraud originating on social media was lost in crypto, far more than any other payment method. 

The top platforms identified in these reports were Instagram (32%), Facebook (26%), WhatsApp (9%), and Telegram (7%).

Of the reported crypto fraud losses that began on social media, most are investment scams.

Indeed, since 2021, $575 million of all crypto fraud losses reported to the FTC were about bogus investment opportunities, far more than any other fraud type. 

The stories people share about these scams describe a perfect storm: false promises of easy money paired with people’s limited crypto understanding and experience. 

Investment scammers claim they can quickly and easily get huge returns for investors. But those crypto “investments” go straight to a scammer’s wallet. People report that investment websites and apps let them track the growth of their crypto, but it’s all fake. Some people report making a small “test” withdrawal – just enough to convince them it’s safe to go all in. 

When they really try to cash out, they’re told to send more crypto for (fake) fees, and they don’t get any of their money back.

Romance scams are a distant second to investment scams, with $185 million in reported cryptocurrency losses since 2021 – that’s nearly one in every three dollars reported lost to a romance scam during this period. 

And many have an investment twist too. These keyboard Casanovas reportedly dazzle people with their supposed wealth and sophistication. 

This strategy is called “pig slaughtering.”

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This story caught my attention and the ability to attend any state college or university and get free child care is a major policy change that can help lift people up without going into massive debt. For people that are looking to have a chance at a better future by attending vocational training, technical schools, or higher education, this state might be your new home.

Child care is so expensive and a roadblock for many people trying to make the leap from welfare to work. State-paid childcare can help many working families get ahead. 

If you have a question or comment you would like to include in an upcoming podcast, you can leave your message here.

Steve Rhode - Your Get Out of Debt Guy.

Vickie wrote to me about her experience with ClearOne Advantage. She was concerned she had made a mistake with ClearOne Advantage and they had let her down. 

Debt situations are complicated, and so much can influence how we deal with our debts. Part of the hidden influencers might be logic, but in Vickie's case, part of the decision-making process was stress, fear, and shame.

I'd love to hear what you think Vickie should do after listening to her question. You can record and share your response at GetOutOfDebt.org/message.

In this podcast, I share some points Vickie should consider when thinking about how to tackle her situation at this point. 

Steve Rhode - Get Out of Debt Guy

Michelle wrote to me at GetOutOfDebt.org with a difficult financial situation. She had used all of her available cash to purchase a house to fix and sell and then was hit with COVID. After being in the hospital for six weeks and not getting paid, her finances are crumbling and she is looking for solutions.

Steve Rhode - Get Out of Debt Guy - GetOutOfDebt.org

The ability for people to make the jump from public benefits to living without the need for benefits is much more complicated than the average person realizes. In this podcast, Damon Day and I talk about the hurdles people face. We also divulge the actual demographic profile of the person most like to commit benefit fraud. The answer will surprise you.

Steve Rhode - Get Out of Debt Guy - GetOutOfDebt.org

Well, the lessons have been learned about being a crypto trading whiz. I talk about what I learned and have come to conclude. I also answer CM's question about IADT for-profit student loan forgiveness options, and how creditors now have to be able to support automated credit denials.

Steve Rhode - Your Get Out of Debt Guy - GetOutOfDebt.org

Tina wanted to know if she should deal with her debt using debt settlement or bankruptcy. 

It is interesting how a seemingly simple question can have a complicated answer. I decided to make your question the subject of a Debt Free Dudes podcast with Damon Day.

Damon and I role-play what a lot of debt relief salespeople might say to you when you can for advice. This podcast contains examples of what you might hear from credit counseling, debt settlement, consolidation loan offers, and bankruptcy.

Steve Rhode - Your Get Out of Debt Guy from GetOutOfDebt.org.

Ryan wrote to me through my site at GetOutOfDebt.org. He wanted to know what he could do to get his AMEX cards back. He said, "I've been an Amex customer for ten years and have five accounts. I spend over $1M each year, closer to $2M on average, and out of the blue, all accounts closed. No missed payments or anything like that. I pay the balances in full each month."

In this podcast, I give Ryan facts about why this happened and what he can do about it.

Steve Rhode - Your Get Out Of Debt Guy

Arianna wrote to me through my website at GetOutOfDebt.org and said she was living on disability income. She wanted to know if the nonprofit credit counseling group American Consumer Credit Counseling was a reputable company to go with to deal with her debt since she was struggling to make minimum payments only.

In this podcast, I give Arianna a lot to think about and consider. She might not have to repay her creditors at all. 

Her situation is an interesting look at how multifaceted debt problems can be. What would you do in Arianna's situation?

A recent reader question dragged me down a long dark tunnel to research if you can have your federal student loans forgiven if you are in jail. You can read my full post here.

The technical answer is it appears some people can have their loans written off. But there is so much more to this than you can even imagine assuming.

Listen to this podcast to be amazed by this impossible program.

Steve Rhode - Your Get Out of Debt Guy - GetOutOfDebt.org