Americans lost a record $5.6 billion to crypto scams last year, says FBI—
Americans lost billions to cryptocurrency scams in 2023, according to a recent report from the United States Federal Bureau of Investigation.
Financial losses “involving the use of cryptocurrency, such as bitcoin, ether or tether” last year totaled over $5.6 billion, per the agency’s 2023 Cryptocurrency Fraud Report. That’s up 45% compared with 2022, according to the report.
Americans lost the most money to crypto investment scams
From fake gaming apps to pig-butchering schemes, there are many types of crypto scams. However, investment scams swindled Americans out of $4 billion, the highest loss by crypto crime type last year, per the FBI’s report.
“Over the years, cryptocurrency’s widespread promotion as an investment vehicle, combined with a mindset associated with the ‘fear of missing out,’ has led to opportunities for criminals to target consumers and retail investors,” the FBI says in its report.
This type of scam typically involves a cyber criminal promising their victim that they’ll earn large profits or returns on their investments while taking on little to no risk. In reality, no legitimate company or business venture can guarantee that you’ll earn a profit on your investment.
Often, fraudsters will start by messaging their victim via dating apps, social media, email or text messages. They’ll sometimes communicate with victims for months in order to gain their trust before offering so-called investment advice about cryptocurrency.
If their victim takes the bait, they’ll lure the victim to sometimes very legitimate-looking websites controlled by the thieves, have the victim create an account and send their funds there.
The fake website will show victims that their investment is growing. However, when victims attempt to withdraw their money or earnings, they’re often unable to or the fraudsters will demand that they pay pricey fees in order to receive their funds.
