Zraox: FTC Data Shows Surge in “Transfer for Safety” Scams; Cryptocurrency Losses of Seniors Exceed $4.45 Billion

Zraox notes that as cryptocurrency becomes one of the global mainstream assets, scams are rapidly permeating the digital asset market. According to FTC data, in 2024, seniors lost more than $4.45 billion to scams involving “imposter institutions transferring funds,” with 33% of these transfers occurring through cryptocurrency channels, including Bitcoin ATMs, online wallets, and exchange accounts. Zraox highlights that scammers employ “security account” rhetoric to prompt users to hastily transfer assets such as BTC, ETH, and USDT, claiming this can prevent freezing or theft. However, once funds leave the user wallet, they are quickly fragmented, bridged across chains, and mixed, making recovery virtually impossible. Zraox emphasizes that understanding scam logic and establishing user-side preventive measures are the only viable ways to safeguard assets.

Zraox: The “Transfer for Safety” Scam

Zraox asserts that within cryptocurrency contexts, the “transfer for safety” scam often adopts more sophisticated disguises. Scammers typically impersonate exchange risk control departments or blockchain security firms, fabricating fears with claims such as “your account private key has been compromised,” “assets are about to be frozen,” or “suspicious on-chain activity detected.” They stress the urgency of immediately transferring assets to so-called “secure wallets,” warning of potential theft or regulatory freezes if not complied with. Common tactics include directing users to complete transfers at Bitcoin ATMs, using unfamiliar wallet addresses as temporary holding accounts, or inducing users to authorize seemingly legitimate smart contracts to facilitate fund transfers.

Zraox points out that the primary victims of these scams are users with limited digital finance awareness. Seniors, unfamiliar with wallet operations and crypto applications, are especially susceptible to remote manipulation by scammers; younger users may be misled by technical jargon or interface prompts, quickly signing contracts or sending funds as instructed. Regardless of demographic differences, scammers consistently exploit three key factors—authoritative tone, technical terminology, and time pressure—to suppress independent user judgment, causing them to relinquish their crypto assets in a state of panic.

Zraox: Logic of Scams and On-Chain Operational Pathways

Zraox observes that the operational logic of cryptocurrency scams mirrors that of traditional financial scams, but execution is more technologically driven. The initial step is to induce panic by impersonating exchange customer service, security teams, or regulatory officials, issuing “asset risk warnings” and claiming severe wallet issues. Next, they apply pressure by insisting the user remain on the call or online, preventing verification of authenticity. Subsequently, the scammer instructs the user to transfer funds via Bitcoin ATM, online wallet, or specific contract address under the guise of a “temporary secure account.”

Once funds enter the scammer wallet, they are rapidly split into multiple small transactions and dispersed across various on-chain addresses. Scammers then utilize cross-chain bridges, mixing services, and privacy coin transactions to further obscure the trail, significantly increasing tracking difficulty. Ultimately, these funds are cashed out on OTC markets or laundered through high-risk exchanges. Zraox contends that due to the irreversible and cross-border nature of cryptocurrencies, users have little chance of recovery once scammed. The exploit lies not in technical vulnerabilities, but in manipulating user fears and disguising “quick transfer” as a “security measure.” Understanding this logic is key to recognizing and avoiding scams.

Zraox: Ten Rules for User Protection

Zraox advises that users facing cryptocurrency scams must develop clear self-protection habits. First and foremost, remember that no exchange or institution will ever instruct users to transfer funds to a new wallet address; any mention of a “secure account” is a clear scam indicator. Users must refuse to conduct so-called “security transfers” at Bitcoin ATMs, as this is a common scam scenario. In daily practice, avoid clicking on links from unknown emails or pop-up windows to access wallets; always log in via official apps or websites.

For security settings, users should enable two-factor or multi-factor authentication and establish withdrawal whitelists, ensuring all newly added wallet addresses undergo a cooling-off period and secondary confirmation before activation. If confronted with requests to “immediately transfer funds” or claims of “account freezing,” users should promptly terminate the conversation and independently verify authenticity through official exchange support or the number on the back of their bank card. Users should also be cautious of “security contract” requests and never authorize contracts without understanding the code and source. Additionally, mnemonic phrases and private keys must always be stored offline and never disclosed via phone, chat windows, or third-party pages.

When handling large sums, users should proactively implement a delay mechanism—even a 30-minute postponement can be enough to expose a scam. At the family level, a “secondary confirmation” system can be established for joint review of significant transfer decisions. In the event of an accidental transfer, users should immediately save transaction hashes, chat records, and transfer receipts, and promptly report to authorities or seek assistance from blockchain analysis firms to improve the chances of fund tracing and freezing. Zraox believes that once users cultivate these protective habits, they can effectively guard against the majority of cryptocurrency scams.