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Americans lose $5.6 billion to rising crypto scams – Report

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Crypto Scams in 2023: Americans suffer staggering losses, reaching $5.6 billion, as fraud cases continue to rise in the volatile crypto market.

In 2023, Americans lost over $5.6 billion to crypto scams, according to a report from the FBI. This figure represents a 45% increase in losses compared to the previous year. 

The rise in crypto crime has been a notable concern globally, including in the US. The anonymity and decentralization of cryptocurrency have made it a target for illicit activities, such as fraud, money laundering, and cyberattacks.

“In 2023, the Federal Bureau of Investigation (FBI) Internet Crime Complaint Center (IC3) received more than 69,000 complaints from the public regarding financial fraud involving the use of cryptocurrencies, such as bitcoin, ether, or tether,” the FBI said.

The FBI also explained that even though cryptocurrency-related complaints make up only 10 percent of all financial fraud complaints, the money lost in these cases is almost half of all the total money lost to fraud.

Investment scams top the rank

The report also showed that in all of the categories of crime including investment scams, call center frauds, tech/customer support scams, and government impersonation scams, investment scams raked in the highest funds.

 “The exploitation of cryptocurrency was most pervasive in investment scams, where losses accounted for almost 71 percent of all losses related to cryptocurrency,” the report revealed.

Investment scams are when a scammer tricks a victim into giving them money by promising big returns or profits. Scammers try to convince potential victims with promises of a great investment opportunity, but it’s usually fake. 

Instead of investing the money to help it grow, these scammers just take it for themselves. Victims end up losing their money, and the profits they expect never happen.

Crypto scammers are shifting tactics according to a new report; they are now targeting victims via a new scheme.

The FBI added that beyond the investment scam, “call center frauds, including tech/customer support scams and government impersonation scams, accounted for about 10 percent of losses associated with cryptocurrency.” 

Thread with caution 

Globally, cryptocurrency-related crime is often linked to fraud and scams. The 2023 Global Crypto Crime Report by Chainalysis revealed that scammers stole billions from unsuspecting investors, with Ponzi schemes and investment fraud being particularly prominent. 

Additionally, ransomware attacks, where cybercriminals demand cryptocurrency payments in exchange for unlocking compromised systems, have surged. These criminals often use crypto to evade traditional

The FBI warns that anyone can fall victim to these scams and emphasizes the importance of being cautious when approached with investment offers, especially from strangers online.

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