FBI’s 2023 Cryptocurrency Fraud Report: $5.6 Billion Lost in Exploding Investment Scams
The FBI’s Internet Crime Complaint Center (IC3) has released its 2023 Cryptocurrency Fraud Report, revealing alarming trends in the rapidly growing world of cryptocurrency crime. In 2023 alone, over 69,000 cryptocurrency-related complaints were reported, with losses surpassing $5.6 billion, marking a 45% increase in losses from the previous year.
Cryptocurrency investment fraud remains the most significant threat, accounting for nearly 71% of all cryptocurrency-related losses. Fraudsters use the promise of lucrative returns to lure victims into scams, often convincing them to invest in fraudulent cryptocurrency platforms or schemes. The anonymity and decentralized nature of cryptocurrency make it an attractive tool for criminals, allowing them to siphon funds and disappear without a trace.
The report highlights that older generations have become increasingly vulnerable, with individuals over 60 reporting losses of more than $1.6 billion. However, the impact is widespread, as victims in their 30s and 40s also report significant losses, totaling $693 million and $843 million, respectively.
In 2023, scammers increasingly relied on confidence-enabled investment fraud, exploiting social media platforms, dating apps, and professional networking sites to build trust before introducing victims to fraudulent cryptocurrency investments. These scams often involve fake apps or websites, where victims are shown falsified profits to encourage further investment. In reality, the funds are stolen, and recovery is nearly impossible.
Call center fraud, including tech support and government impersonation scams, accounted for approximately 10% of all cryptocurrency losses. Scammers posing as tech support agents or government representatives instruct victims to transfer cryptocurrency, capitalizing on the victims’ unfamiliarity with the technology.
The FBI’s Virtual Assets Unit (VAU) has been at the forefront of efforts to combat cryptocurrency-related crime, utilizing advanced blockchain analysis tools and working with global law enforcement partners to trace and recover stolen assets. The FBI stresses the importance of reporting cryptocurrency scams to IC3.gov, as rapid reporting can significantly aid in investigations.
