Which US States Have the Most Cryptocurrency Scams?

Did you know that the state where you reside actually plays a part in whether or not you might become the victim of a scam? It does, we aren’t making this up.

Of course, the reason goes deeper than just location, and we will explain everything in this blog article. So, if you are curious about whether or not you should be on the lookout for a crypto scam in your state, keep reading.

Why Do Some States Have More Crypto Scams Than Others?

It might sound far-fetched, but there are several legitimate reasons why residents of certain states suffer more scams than others, and they aren’t for the reasons you might think.

1. How the Local Government Contacts Residents

This one is huge. Everyone knows that the IRS (a federal agency) will only contact residents by mail to report issues with taxes (and if you didn’t know that, you do now!), but this isn’t always the case with local law enforcement agencies. In some states, you might get emails from the police, while in others, snail mail is still the priority.

The problem with this is that some of these methods of communication are easy to compromise, especially with technology that allows the spoofing of phone numbers and emails. In one recent case, several residents of Colorado were scammed when they received phone calls from numbers associated with local law enforcement entities stating that they missed Jury Duty and requiring they pay Bitcoin or be arrested.

This issue, in particular, is especially growing as it grows easier to move across state lines. Something which may be normal in one state, could be the sign of a scam in another and vice versa.

2. Education Levels

You might be surprised to find out that different states manage local education differently, and thus, overall education levels vary widely across the United States. This is especially true when it comes to technology education.

In some states, where education levels are generally lower, scams tend to run rampant, especially among the older generation who is often using technology far beyond their understanding.

Additionally, many Boomers are still unaware of how tricky some online scammers can get, meaning in states with a lot of Boomers, you are more likely to have more scammers targeting the residents of that state.

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3. Financial Accessibility

One of the main proponents of cryptocurrency scams is the ability of a local resident to turn their cash into crypto to send to the scammer. Thus, increased access to cryptocurrency services actually causes an increase in the number of cryptocurrency scams in that state.

It might be crazy to wrap your head around, but think of it this way—if someone calls you and tells you that you need to head to a Western Union location and wire money (or a Bitcoin ATM and send Bitcoin) if there is one just down the street you are more likely to panic and send it than to stop and think through whether or not the threat is legitimate.

On the other hand, if you live in a small city in the middle of nowhere Kansas or North Dakota, chances are your town only has one bank, no Bitcoin ATM, and no way to wire money other than the bank. Thus, when you have to make the more than an hour drive to the bigger town in the area (giving you time to think over the scam), you are more likely to realize it’s a scam before sending the money.

Plus, if you do walk into the town bank to wire money, you likely know the individual behind the counter, and they may be able to spot the scam before you do. Even elderly people in these locations often have to call a son or daughter to help them send the money, often stopping the scam in its tracks when their relative realizes their parent is the victim of fraud.

4. Number of Religious Residents

Unfortunately, being religious makes you more likely to become the victim of a scam, and several studies have shown that scams spread through religious communities like wildfire. All it takes is one misinformed individual, and often, the scammer can make away with millions.

Therefore, states with larger religious populations are much more likely to have more scammers operating within the state. Although these scammers aren’t always successful, they know that if they can just get one member of a religious community on their side, the rest will likely follow.

5. Age of Residents

Last, but certainly not least, states with more retirees often see more scams than states with a younger population. This is due to both the elderly not being as educated about the technology surrounding crypto as well as the fact that they are generally easier targets for scams in general—whether they are crypto-based or not.

Related: What Are Social Engineering Scams?

What States Have the Most Scams?

Now that you know why some states have more scams than others, let’s look at the states with the most cryptocurrency scams.

1. California: Over $1.15 billion was lost to scams in 2023 alone.

2. Texas: In 2023, over $1 billion was lost to scams.

3. Florida: Over $425 million was lost to scams, with the average victim losing $27,000.

4. New York: $400 million was lost to scams in 2023.

5. New Jersey: $263 million was lost to scams in 2023.

6. Pennsylvania: More than $193 million was taken by scammers in 2023.

7. Illinois: An estimated $336 million was taken in 2023—some of which were only revealed to be scams after 2023 ended.

8. Arizona: An estimated $425 million was lost to fraud, with $325 million lost to crypto scams alone in 2023—much of it due to romance fraud.

9. Georgia: Over $156 million was lost to fraud in 2023.

10. Washington: Around $250 million was lost to scammers in 2023.

See your state on the list? Then, it’s important to be vigilant whenever you get a call or email from a religious or government source. Remember, if something seems off, it probably is, and investigate before sending any money.

Even if your state isn’t on this list, remember that cryptocurrency scams are everywhere, so always remain vigilant, especially when talking with individuals online or receiving any links by email.

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