Key Takeaways:
- Americans lost $5.6 billion to cryptocurrency scams in 2023, a 45% increase from 2022.
- Individuals over 60 were most affected, losing $1.6 billion, with investment schemes comprising 71% of fraud cases.
- Cryptocurrency ATMs were used in over 5,500 scams, leading to $189 million in losses due to their anonymity.
The FBI’s 2023 report on cryptocurrency fraud revealed that Americans lost $5.6 billion to scams involving digital assets, marking a 45% increase from 2022.
Despite crypto-related complaints constituting only 10% of total reports to the FBI’s Internet Crime Complaint Center, they accounted for nearly 50% of financial losses.
⚠️ Scam alert: The #FBI’s new report shows a dramatic rise in cryptocurrency fraud, with losses hitting $5.6 BILLION. Stay informed, learn about scammer's latest tactics, and protect yourself—read the report now at https://t.co/yNwEbIyeAs
— FBI (@FBI) September 9, 2024
The most targeted demographic was individuals over 60, who collectively lost $1.6 billion.
Investment schemes were the most common type of fraud, representing 71% of cases, followed by scams like government impersonation and call center fraud.
Many scams fell under “confidence schemes,” where fraudsters build trust with victims.
The FBI also warned of labor trafficking, where victims are coerced into fraudulent activities.
Crypto’s Dark Side: Scammers Draining $5.6B in 2023
— Mario Nawfal’s Roundtable (@RoundtableSpace) September 9, 2024
Crypto fraud’s on a heater, up 45% last year, torching $5.6B.
FBI says the game’s rigged with investment scams leading the pack – 71% of losses came from hype projects promising moonshots.
69.5k complaints dropped in 2023… pic.twitter.com/8y42JMDz76
Cryptocurrency ATMs were increasingly used in scams, with over 5,500 cases in 2023 leading to $189 million in losses.
Due to the anonymity these machines provide, recovering funds is difficult.
Notably, 75% of victims were unaware they had been scammed until informed by the FBI.
About The Author
Efe Bravo, a seasoned journalist, delivers compelling insights into the cryptocurrency and blockchain industry.
His articles offer a deep dive into the latest trends, projects, and technological advancements shaping the future of digital finance.
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