FBI: Cryptocurrency scams cost $5.6 billion last year
The latest report from the FBI Internet Crime Complaint Center shows that it received more than 69,000 complaints related to cryptocurrency fraud in 2023, with property losses reaching US$5.6 billion, an increase of 45% from 2022, and the vast majority of complaints were related to The losses came from the United States.
What’s even more astonishing is that although cryptocurrency-related complaints accounted for only 10% of the total complaints, the amount of financial losses accounted for nearly 50% of the total losses that year. The elderly usually have more free time than young people and can easily become prey in the eyes of scammers, especially scammers who are good at building harmonious relationships.
The FBI noted that investment scams accounted for the highest proportion of all crypto scams at nearly 71%, followed by call center scams and government impersonation scams at approximately 10%. In terms of victim distribution, people over 60 years old were most commonly affected, with losses of approximately $1.6 billion.
Source: FBI Report FBI Cryptocurrency Scam Report
Be careful when strangers recommend investment projects
In order to call on the public to guard against such scams, the FBI gives important suggestions:
"These scammers usually won't meet you in person. If someone you've never met recommends an investment opportunity to you, be extremely cautious."
The FBI warns that there are also many "pig-raising and killing-pig" scams that exploit foreign workers. Employers may require workers to repay employment expenses, such as room and board, and may withhold passports or other documents.
Other scams include Play to Earn scams, which ask users to buy game tokens and then freeze their wallets, and businesses claiming to help recover lost cryptocurrency may also be scams.
Cryptocurrency ATMs a tool for scams
According to ABC News, scammers also use cryptocurrency ATMs to conceal cash flows. The FBI documented 5,500 cases involving ATMs, resulting in more than $189 million in losses. Scammers use ATMs instead of banks because of the anonymity of ATM transactions.
James Barnacle, deputy assistant director of the FBI’s Criminal Investigation Division, revealed that money transferred from cryptocurrency ATMs is nearly impossible to recover. This year they notified 3,000 victims, 75% of whom were completely unaware they had been victimized.
Taiwan virtual currency fraud defrauded more than 700 million in 4 years
Not just in the United States, virtual currency (including cryptocurrency) investment fraud is also a headache for the Taiwanese government. According to statistics from the Criminal Bureau's Anti-Fraud Center, the total amount of financial losses in virtual currency fraud cases in the past four years has exceeded NT$700 million. The most common methods are fake platform fraud, fake dating investment fraud, etc.
Recently, the 165 Anti-Fraud Hotline of the Police Department has also produced an "Anti-Fraud Dashboard" to allow the public to track the current status of fraud cases on a daily basis. The latest data shows that fraud losses exceeded 400 million on September 9, of which 260 million was defrauded by fake investment scams alone.
Source: Anti-Fraud Dashboard Taiwan’s financial losses in fraud cases exceeded NT$400 million on September 9
With scams rampant, understanding fraud techniques seems to have become a required course online.
The well-known YouTuber "Joeman" recently released a new video. By working as an undercover agent in a stock fraud group and interviewing people in the financial field such as Wu Danru, he takes the public to get a glimpse of fraud techniques and the current situation of fraud prevention in Taiwan. The content of the video is easy to understand and is worth sharing with elders or relatives at home to learn how to prevent fraud together!
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