YEREVAN (CoinChapter.com) — Americans lost more than $5.6 billion to cryptocurrency fraud in 2023, according to the FBI report. This is a 45% increase from 2022, driven mainly by cryptocurrency scams involving investment fraud. The FBI report states that criminals continue to exploit the decentralized nature of digital assets, which allows for quick and irreversible transactions.
FBI 2023 Cryptocurrency Fraud Report Cover. Source: FBI Investment Scams Lead to $3.96 Billion Loss in 2023, FBI Warns of Rising Cryptocurrency Fraud
Investment scams accounted for the largest portion of cryptocurrency-related scams, with $3.96 billion lost in 2023. The FBI report highlighted that criminals often use social media and dating apps to build relationships with their targets. Once trust is established, the scammer convinces the victim to invest in fake cryptocurrency investments using fraudulent websites or apps. These schemes appear legitimate at first, allowing victims to withdraw small amounts before locking their funds later.
Criminals take advantage of the cryptocurrency transactions that are irreversible and move quickly. The FBI report emphasized that recovering stolen funds is difficult once these scams take place.
Confidence-Enabled Cryptocurrency Investment Fraud Warning. Source: FBI Cryptocurrency Fraud Report 2023 Fast, Borderless Crypto Transactions Create Major Challenges for Law Enforcement
Cryptocurrency transactions happen quickly and without borders, which attracts fraudsters. They transfer funds across the globe with ease, making it difficult for law enforcement to intervene. Once the money reaches countries with lax regulations, tracing and recovering it becomes almost impossible.
The FBI report emphasizes that, while the blockchain records all transactions, recovering stolen funds remains a major challenge due to jurisdictional limits. Criminals use these fast transactions to commit crimes like investment scams. The FBI continues to warn about these rising trends.
Elderly and Young Victims Alike Lose Billions to Cryptocurrency Scams in 2023
Older Americans faced the highest losses from cryptocurrency scams in 2023. According to the FBI report, individuals over 60 lost more than $1.6 billion to cryptocurrency fraud. Criminals often targeted elderly victims through tech support or romance scams, building trust before convincing them to invest.
Meanwhile, younger individuals were also affected. The FBI received over 6,200 complaints from victims in their 20s, with total losses surpassing $168 million. Cryptocurrency scams continue to impact people of all ages, with fraudsters preying on both older and younger victims.
Cryptocurrency Kiosk Complaints and Crime Types Breakdown 2023. Source: FBI Cryptocurrency Fraud Report 2023 Victims of Cryptocurrency Scams Targeted Again by Fake Recovery Services, FBI Warns
After being scammed, some victims are targeted again by fraudulent companies that claim to recover stolen cryptocurrency. These fraud recovery scams promise to help victims but require upfront fees. The FBI report cautions that no private business can legally recover lost cryptocurrency, and victims should be wary of such services. Many victims find themselves trapped in multiple rounds of fraud.
The FBI’s report paints a very clear picture of how cryptocurrency fraud continues to grow and who might be most at risk.
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