Cryptocurrency-related scams and frauds soared last year, with losses up 45% in 2023 compared to the previous year, according to a new report from the FBI.
As cryptocurrencies gain popularity in the United States, they are also leading to an increase in cryptocurrency scams. According to the FBI a report According to a report released on September 9, total losses from these scams exceeded $5.6 billion in 2023.
In 2023, the FBI’s Internet Crime Complaint Center received more than 69,000 complaints from the public about financial fraud related to cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), or Tether (USDT).
Investment fraud was the costliest, accounting for 71% of total losses, or nearly $3.96 billion. Call center fraud and government impersonation scams followed, contributing 10% of losses.
The most vulnerable demographic appears to be people over the age of 60, who reported the highest number of complaints. According to the FBI, their total losses exceeded $1.6 billion.
Different Types of Cryptocurrency Scams
Scammers often build trust through dating apps or social media before luring victims into fraudulently investing in cryptocurrencies. Some of the scams highlighted by the FBI include investment scams, lottery scams, romance scams, credit card fraud, extortion, and ransomware.
Some of these scams, such as romance scams, often called pig slaughter scams, involve scammers befriending victims under the guise of a potential love interest.
Victims may be allowed to withdraw small amounts to build their credibility, but they end up being scammed into even bigger losses. In some cases, fraudulent recovery services that promise to recover their stolen funds exploit victims even further.
The FBI is urging the public to be extremely cautious when approaching investment opportunities from individuals they have only met online, stressing that anyone can be a target.