Last year witnessed a significant surge of 45% in cryptocurrency-related scams, as per the FBI's revelations.
A surge in crypto-related swindles boosted the general escalation in deceit. Individuals reported around $4 billion in crypto-related investment losses in 2023, a significant jump from the $2.57 billion recorded in 2022.
For the first time, the FBI released a report focusing explicitly on crypto-related fraud from their broader annual fraud statistics, as discussed during a press call by an FBI representative. Crypto-related fraud accounted for nearly half of the record $12.5 billion in online fraud losses reported to the FBI in the previous year.
The FBI is continually working to raise public awareness about the issue and encourage victims to swiftly report crypto scams to recover their stolen funds. According to an FBI representative, "many victims have racked up substantial debt trying to cover losses from these fraudulent investments."
The representative also pointed out that this issue poses a "continuing threat to the American public" from international con artists. "Cryptocurrencies encompass every investigation area the FBI deals with," they added.
The FBI handles a broad spectrum of digital crimes, including ransomware attacks and tech-support scams, which result in losses amounting to billions of dollars annually for the global economy. The new report reveals that crypto is frequently used as the currency of choice in many of these fraudulent schemes.
The FBI representative mentioned an increasing number of crooks worldwide are involved in these investment scams, which typically involve fooling victims into putting cryptocurrency into fake ventures by gaining their trust.
Victims of all ages can fall prey to crypto scams, the representative noted. According to the report, people older than 60 accounted for $1.6 billion in reported losses in 2023.
Last year, a CNN investigation highlighted some of the tens of thousands of American victims of these complex crypto-investment scams, which are sometimes orchestrated by Chinese crime syndicates based in war-torn Myanmar and other Southeast Asian countries.
The representative emphasized that crypto-related fraud is a significant concern in the realm of politics, with potential impacts on financial regulations and consumer protection. Due to the global nature of these scams, international cooperation is vital to combat this continuing threat.
