FBI: Crypto Investment Fraud Surged 53% in 2023, Topping $3.94 Billion
The Federal Bureau of Investigation (FBI) has reported a surge in losses due to cryptocurrency-related investment scams.
According to a recent report by the FBI , investment losses related to cryptocurrencies rose from $2.57 billion in 2022 to approximately $3.94 billion in 2023, representing a staggering 53% increase.
These losses accounted for the largest portion of investment fraud within the country, making up around 86% of the total investment fraud losses, which amounted to $4.57 billion for the year.
The FBI highlighted the alarming trend of victims falling prey to crypto scams, enticed by the promise of substantial returns on their investments.
“These scams are designed to entice those targeted with the promise of lucrative returns on their investments,” emphasized the FBI.
One of the most prevalent types of crypto scams victimizing individuals is romance scams.
In this scheme, criminals adopt fake online identities and establish trust with victims before convincing them to send cryptocurrencies, only to vanish thereafter.
Chainalysis, a blockchain analysis firm, reported that romance scams alone were responsible for at least $374 million in suspected stolen crypto in 2023.
Phishing scams also posed a significant threat to crypto users, with over 324,000 individuals falling victim to such scams in 2023, resulting in the loss of approximately $295 million in digital assets.
These scams typically involve deceiving users into revealing their wallet credentials, allowing scammers to drain their funds.
It’s important to note that the rise in crypto scam victims is not limited to the United States alone.
Countries around the world are grappling with similar issues.
In April 2023, the Australian
Read more on cryptonews.com
