Cryptocurrency Scams Account for 86% of U.S. Investment Fraud in 2023: FBI Report
Summary:
In 2023, the FBI reported that the majority of investment loss in the U.S. resulted from cryptocurrency-related fraud. Crypto scams accounted for 86% of total investment fraud that year, an estimated $3.94 billion, marking a 53% increase from 2022. Promising the allure of substantial returns, these scams attracted an increasing number of victims. These scams are global, with countries like Australia also reporting significant losses.
In 2023, the major portion of investment loss in the United States was attributed to frauds linked to cryptocurrencies, according to the Federal Bureau of Investigation (FBI). A recent disclosure by the FBI revealed that the losses from fraudulent crypto investments surged from $2.57 billion in 2022, ascending to $3.94 billion in 2023, marking a 53% increase. With the total investment losses for 2023 standing at $4.57 billion, this means the losses from crypto scams were roughly 86% of the total investment fraud toll for that year. As per the FBI's report to the Internet Crime Complaint Center (IC3), an increasing count of victims are being lured into fraudulent crypto schemes with the idea of substantial returns on their investments. The allurement towards profitable returns is one of the many lures of these deceptive plots. One type of scam that is plaguing people is the romance scam, wherein a fraudster adopts a counterfeit identity online to gain someone's trust and feelings before persuading them to transfer them their cryptocurrencies, never to be seen again. Chainalysis, in December 2023, attributed at least $374 million of alleged stolen crypto to romance scams in 2023. Related: How to protect your crypto from hackers during bullish periods. In the meantime, early this year, Cointelegraph brought to attention that, in 2023, over 324,000 crypto users were tricked by phishing scams resulting in the loss of nearly $295 million in digital currencies. This upward trend in crypto scams is not confined to the U.S., as other countries worldwide are also facing similar challenges. In April 2023, the Australian Competition and Consumer Commission (ACCC) disclosed that Australians experienced losses of 221.3 million Australian dollars ($146.9 million) in 2022 due to investment scams involving cryptocurrency payments, exhibiting a 162.4% increase from the previous year. Furthermore, a spotlight article focused on the owner of seven-trait CryptoPunk Seedphrase collaborating with the prestigious auction house, Sotheby’s, in relation to the NFT Collector.
Published At
3/9/2024 7:50:00 AM
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