Bitcoin fraud losses hit $5.6B in 2023, a 45% jump from 2022, with seniors most targeted by investment scams, says the FBI.
Scammers use fake institutions and urgency tactics, affecting seniors and 30-40-year-olds, with many scams linked to Southeast Asia.
The FBI's Virtual Assets Unit is tackling crypto fraud, but cases keep rising, highlighting the need for public vigilance and reporting.
FBI has Obtained evidence that shows losses of $5.6 billion attributable to Bitcoin scams, this is up by 45% from the previous year of 2022. During the initial half of the previous year, 69,000 reports of claims were filed with the FBI's Internet Crime Complaint Center.
Seventy-one percent of the losses were investment fraud, much of it aimed at seniors. Since cryptocurrencies are decentralized, most cases of fraud emerge because no one is watching over any illegal activities.
https://twitter.com/justicedotxyz/status/1833404366637961618 Tactics Used in Cryptocurrency Scams
Moreover, fraudulent play-to-earn gaming systems and liquidity mining schemes are common types of fraud. To keep their victims under control, scammers employ isolation and a sense of urgency.
Many of the affected individuals have thus faced severe financial difficulties. In order to trick potential investors, criminals also commonly assume the identities of financial institutions or government representatives via intricate websites and applications.
Notably, the FBI created the Virtual Assets Unit (VAU) in 2022 with the specific goal of looking into crimes involving cryptocurrencies. This section teaches staff about the seizure of virtual assets, centralizes expertise, and improves blockchain analysis. However, cryptocurrency fraud is still increasing in spite of these initiatives.
Elderly and Kiosk Users Among Top Targets
The next most vulnerable age group to fall for these scams, after senior persons, was identified by the FBI to be people in their 30s and 40s. Federal organizations like the FBI and the U.S. Commodities Futures Trading Commission continue to raise public awareness of fraud associated with cryptocurrencies. Notably, a lot of scams originate from labor trafficking in Southeast Asia, where victims are forced to serve as slaves for con artists.
Concern is also increasing over the surge in fraudulent behavior with cryptocurrency kiosks. Victims are frequently given comprehensive instructions by thieves on how to use these kiosks to transfer and withdraw money. Therefore, even in the event that there is no monetary loss, the FBI advises individuals to exercise caution and report any suspicious activity to ic3.gov.
Despite the growing complexity of Bitcoin fraud, the FBI is still looking into and stopping these schemes. To guard against potential losses, the public must be on guard and report any questionable conduct.
The post FBI Reports Massive Jump in Bitcoin Fraud: Elderly and Kiosk Users Among Top Targets appeared first on Crypto News Land.
