Investment fraud accounts for 71% of $5.6 billion in crypto losses.
Victims over 60 reported $1.6 billion; California tops fraud statistics.
The FBI’s Internet Crime Complaint Center (IC3) has revealed a sharp rise in cryptocurrency-related fraud. Americans lost $5.6 billion in 2023—a 45% increase from the previous year. The IC3’s annual report recorded over 69,000 complaints, underscoring the growing exploitation of digital currencies in various scams.
Investment fraud was the most costly form of crypto scams, accounting for 71% of the total losses, or $4 billion. One of the most pervasive schemes is the so-called “pig butchering” scam, where fraudsters form online relationships with victims and convince them to invest in fraudulent platforms. The FBI noted that many victims incurred significant debts as a result.
Meanwhile, though crypto fraud represented only 10% of overall financial complaints, it contributed to nearly half of the total monetary losses. Victims over the age of 60 were the hardest hit, reporting losses of $1.6 billion. California recorded the highest complaints and losses at 9,522 and $1.2 billion, respectively.
The FBI also highlighted the connection between crypto scams and human trafficking, particularly in Southeast Asia. Criminal gangs recruit workers through fake job ads, then force them into scamming operations. The report warned U.S. citizens about the risks of traveling abroad for employment.
Moreover, the FBI pointed to scams involving crypto kiosks, which resulted in over $189 million in losses. Due to the anonymity of ATM transactions, scammers frequently use kiosks to defraud victims through schemes like extortion and romance fraud.
Additional Concerns and Warnings
The FBI also warned against emerging trends like play-to-earn scams, where users are lured into buying tokens for online games, only to find their wallets frozen. Victims are also cautioned about fraudulent services that claim to recover lost crypto. These schemes exploit vulnerable users seeking to retrieve their stolen funds, adding another layer of deception to the evolving landscape of crypto fraud.
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