Cryptocurrency Scams Cost Americans $5.6 Billion in 2023, According to FBI

The FBI’s Internet Crime Complaint Center disclosed in its 2023 report that Americans were swindled out of $5.6 billion due to cryptocurrency fraud, marking a 45% increase from the previous year. Crypto-related issues constituted 10% of all complaints but nearly half of the total financial losses reported.

In 2023, the FBI fielded 69,000 complaints about crypto scams, with seniors over 60 suffering the most, losing nearly $1.6 billion. A substantial 71% of these frauds were tied to bogus investment opportunities, while around 10% were related to call center scams and impersonation of government entities.

Money stolen through crypto confidence schemes

Predominantly, these scams were executed through confidence schemes, notably impacting individuals in over 200 countries, though primarily in the U.S. The FBI emphasizes caution against trusting online investment pitches from strangers who avoid in-person meetings.

The report also highlighted the prevalence of labor trafficking scams where individuals are duped into exploitative jobs overseas, often in call centers that also perpetrate ‘pig butchering’ scams. These operations may involve seizing passports and demanding payment for lodging and meals under false pretenses.

Additionally, play-to-earn scams and fraudulent crypto recovery businesses pose significant risks to U.S. residents, tricking them into financial commitments with no returns.

ATMs pose multiple risks

Regarding automated teller machines (ATMs), the FBI noted 5,500 incidents involving kiosks with losses amounting to over $189 million. These kiosks are favored by fraudsters for maintaining anonymity during transactions. Common complaints related to kiosks include various scams like romance and government impersonation frauds.

James Barnacle, Deputy Assistant Director at the FBI Criminal Investigative Division, commented to ABC News on the slim chances of recouping money lost through ATM scams. He noted that many victims, about 75% of the 3,000 individuals notified by the FBI this year, were unaware of their victim status.

For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble

What is your opinion on this particular topic?  Leave us your comment below!  We are always interested in your opinion!