In 2023, the crypto market experienced several security issues, and the US reported the highest complaints about crypto fraud. On Monday, the FBI reported that the financial damage from crypto crimes exceeded $5.6 billion. The report shows how Bitcoin, Ethereum, and Tether have become the most attractive assets for cybercriminals.
⚠️ Scam alert: The #FBI’s new report shows a dramatic rise in cryptocurrency fraud, with losses hitting $5.6 BILLION. Stay informed, learn about scammer's latest tactics, and protect yourself—read the report now at https://t.co/yNwEbIyeAs
— FBI (@FBI) September 9, 2024
FBI Reports Massive Losses
According to the FBI’s Internet Crime Complaint Center (IC3), the number of complaints relating to crypto fraud reached 69,000 in 2023. The FBI report shows that 71% of these losses were due to cryptocurrency-related scams.
About 10% of the financial losses were linked to tech support scams, government impersonation, and fraudulent call centers. Many of these scams involved using cryptocurrency as a tool for fraud.
Investment Scams Dominate
Investment fraud continued to be the most common type of cryptocurrency crime. The losses increased by 45% compared to the previous year. This has raised a lot of concern among the authorities and industry professionals.
The FBI’s investigation showed that cryptocurrency fraud targeted the elderly. According to the data, 16,806 victims aged 60 and above lost more than $1.6 billion annually to scams. Young people, especially under 20, made only 858 reports, with losses worth $14.7 million.
Fraudulent Tactics Uncovered
The report also pointed out the different ways in which the fraudsters were able to defraud the victims. These comprised tech support scams, personal information theft, blackmail, and love scams.
Bitcoin ATM Scams Surge 10x Since 2020: $110M Lost in 2023The most impactful type of fraud was investment fraud, with criminals stealing $3.9 billion in 2023. Personal data breaches contributed to the total losses to $500 million. These incidents impacted the states of California, Florida, Texas, New York, and Washington the most.
U.S. Leads Global Complaints
In California only, the victims reported over $1.1 billion in losses to crypto-related fraud. The US led the list of countries with 57,762 complaints related to cryptocurrency fraud. Canada, which came second, had only 1,236 complaints to make.
The FBI explained that decentralized digital money and cryptocurrencies lack intermediaries, making them ideal for criminal use. The lack of regulation makes crypto assets a perfect tool for fraud and other scams.
