FBI report reveals $5.6bn lost to Crypto scams in 2023 

The Federal Bureau of Investigation (FBI) has revealed a staggering 45% increase in cryptocurrency scams across the United States, with Americans losing over $5.6 billion to these scams in 2023.

The findings were detailed in a report released by the FBI’s Internet Crime Complaint Center (IC3) on September 9, highlighting the growing threat of crypto-related fraud.

The report disclosed that more than 69,000 complaints involving cryptocurrency fraud were received in 2023, with scams primarily targeting popular digital currencies like Bitcoin, Ether, and Tether.

Despite these complaints representing just 10% of total financial fraud reports, they accounted for nearly 50% of the total financial losses reported.

“With the rise in cryptocurrency’s use within the global financial system, so too has its exploitation by criminal actors,” the FBI stated in the report.

The agency emphasized that the most significant losses were tied to investment scams, which accounted for 71% of all crypto-related losses—approximately $3.96 billion. Other prevalent scams included call center fraud and government impersonation, contributing to about 10% of the total losses.

READ ALSO: Crypto fraud increased 45% last year to $5.6 Billion, FBI says

The report also highlighted that individuals over the age of 60 were the most affected demographic, reporting the highest number of complaints and collectively losing $1.6 billion to various scams. The FBI warned that scammers often build trust with victims through social media or dating apps before luring them into fraudulent cryptocurrency schemes.

“Pig butchering” scams, where scammers pose as romantic interests to defraud victims, were among the most common tactics. The FBI also pointed to fraudulent recovery services that prey on those seeking to reclaim lost assets.

In light of these findings, the FBI urged the public to exercise caution when approached by strangers proposing investment opportunities, as anyone could be targeted. The report underscored the prevalence of schemes like rug pulls, exit scams, and pig butchering, which continue to wreak havoc on unsuspecting victims.

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One notable case involved an American bank executive who was sentenced to 24 years in prison for orchestrating a pig butchering scam that led to the collapse of his bank, further illustrating the severe consequences of these criminal activities.