Cryptocurrency-related fraud resulted in more than $5.6 billion in losses in 2023, representing a 45% increase from the previous year, the FBI said in a new report. The FBI’s Internet Crime Complaint Center, or IC3, received more than 69,000 complaints regarding financial fraud involving the use of cryptocurrency. The number of cryptocurrency-related complaints represented roughly 10% of the total financial fraud complaints the IC3 received, but the losses associated with those complaints account for almost 50% of the total losses, according to the report.
“The exploitation of cryptocurrency was most pervasive in investment scams, where losses accounted for almost 71% of all losses related to cryptocurrency,” the FBI said. “Call center frauds, including tech/customer support scams and government impersonation scams, accounted for about 10% of losses associated to cryptocurrency.”
The decentralized nature of cryptocurrency, the speed of irreversible transactions and the ability to transfer value around the world make it an attractive vehicle for criminals and create challenges for recovering stolen funds, the FBI said. “Rapid and accurate complaint reporting are key to assisting law enforcement in investigating fraud schemes that exploit cryptocurrencies,” it added.
In related news, the American Bankers Association Foundation, working in collaboration with the FBI and other federal agencies, released a new infographic warning consumers about the increasing threat of cryptocurrency investment scams. The infographic details five warning signs that consumers should look out for, including unexpected contact by an unknown person and requests to limit contact with financial institutions or advisors.
