In a report released by the FBI in 2023, it was revealed that cryptocurrency scams accounted for over $5.6 billion in losses, based on more than 69,000 complaints filed with the FBI’s Internet Crime Complaint Center (IC3). This represents a 45% increase from the previous year, demonstrating that despite market fluctuations, scams related to digital currencies are not slowing down.
While the broader cryptocurrency market experienced turbulence in 2022, with the collapse of firms like Celsius, Terraform Labs, and the bankruptcy of FTX, scammers have continued to exploit the industry.
The FBI’s report underscores that the losses from cryptocurrency scams now constitute more than half of the total losses from all online scams reported in 2022. This is a staggering statistic that demonstrates just how prevalent these schemes have become.
Investment fraud remains the most common form of cryptocurrency scam, accounting for $3.96 billion of the total losses in 2023. This marks a sharp rise from the $2.57 billion lost to similar scams in 2022. The increasing sophistication of these scams has made it difficult for many people to discern legitimate investment opportunities from fraudulent ones.
Interestingly, different types of scams tend to affect various age groups in different ways. For instance, those in their 30s and 40s were most frequently targeted by cryptocurrency investment frauds. However, individuals aged 60 and above suffered the most significant losses, with more than $1.6 billion reported by this age group alone. This data highlights the need for increased awareness and protective measures, especially for older individuals who may be more vulnerable to these scams.
It’s crucial to note that the actual total of losses is likely much higher than the FBI’s report, as many victims do not report the crimes.
FBI Director Christopher Wray urged people to report scams even if they did not suffer financial loss. According to Wray, doing so helps law enforcement stay ahead of criminals and their increasingly complex methods of defrauding people using emerging technologies.
As cryptocurrency scams continue to grow in size and sophistication, it serves as a reminder that the need for strong cybersecurity measures and public awareness around digital currencies is more critical than ever. Reporting scams can not only help victims but also protect others from falling prey to similar fraudulent schemes.
