Cryptocurrency-related fraud is a growing concern in the United States, with Americans losing over $5.6 billion in 2023 alone. Investment scams are the primary cause of these losses, with victims aged 60 and above being the most affected [5].
Description
In 2023, Americans lost over $5.6 billion to cryptocurrency-related fraud [6] [7], marking a 45% increase from the previous year [2] [4] [5] [7] [8]. Investment scams accounted for the majority of these losses, with victims aged 60 and above reporting the highest losses, totaling over $1.6 billion [7] [8]. The FBI’s Internet Crime Complaint Center received over 69,000 complaints related to financial fraud and crypto in 2023, with victims reporting losses from fraudulent schemes involving cryptocurrencies [5], which make up almost 50% of total financial fraud losses [5]. Scammers utilized tactics such as fake apps or sites, call center frauds [1] [2] [6], government impersonation scams [6], and fake crypto recovery services to target victims, often through dating sites and long-term relationships. Labor trafficking connected to cryptocurrency scams is on the rise [7], with individuals lured overseas by false job advertisements [7]. To prevent falling victim to scams, individuals are advised to research suspicious calls, avoid sharing personal information [6], verify email addresses [6], and be cautious of get-rich-quick schemes [6]. The decentralized nature of cryptocurrency [1] [7], irreversible transactions [1] [3] [6] [7], and global transferability make it attractive to criminals and challenging to recover stolen funds [1]. Law enforcement agencies are working to combat these fraud schemes [5], and individuals can also contact the National Elder Fraud Hotline for assistance [5]. Victims over the age of 60 reported the most losses [6], with California being the most victimized state followed by Texas [6], Florida [3] [6], New York [6], and New Jersey [6]. California alone reported losses exceeding $1 billion.
Conclusion
The rise in cryptocurrency-related fraud poses significant challenges for law enforcement agencies and individuals alike. It is crucial for individuals to remain vigilant, conduct thorough research, and exercise caution when dealing with cryptocurrency investments. Efforts to combat these fraud schemes must be intensified to protect vulnerable individuals, particularly those over the age of 60. As technology continues to evolve, staying informed and adopting best practices in cybersecurity will be essential in mitigating the risks associated with cryptocurrency fraud.
References
[1] https://www.finextra.com/newsarticle/44705/americans-lost-56bn-to-crypto-related-fraud-in-2023—fbi
[2] https://finance.yahoo.com/news/fbi-americans-lost-5-6b-065814221.html
[3] https://www.infosecurity-magazine.com/news/crypto-scams-reach-new-heights-fbi/
[4] https://www.businesstimes.com.sg/companies-markets/banking-finance/losses-crypto-scams-grew-45-2023-fbi-says
[5] https://www.icba.org/newsroom/news-and-articles//2024/09/10/fbi-crypto-fraud-complaints-rise-45-in-2023
[6] https://www.vice.com/en/article/crypto-scams-2023-total-losses/
[7] https://www.benzinga.com/markets/cryptocurrency/24/09/40799485/cryptocurrency-scams-cost-americans-5-6b-in-2023-fbi-report-shows
[8] https://uk.pcmag.com/security/154288/fbi-scammers-stole-56-billion-in-cryptocurrency-funds-last-year
