Americans lost over $5.6b in crypto scams in 2023, FBI says

Cryptocurrency-related scams and frauds have surged over the past year, with losses expected to increase by 45% year-over-year in 2023, according to a new FBI report.

As cryptocurrencies gain popularity in the United States, crypto scams are also on the rise. According to an FBI report published on September 9, the total losses from these scams are expected to exceed $5.6 billion in 2023.

The FBI Internet Crime Complaint Center received more than 69,000 complaints from the public in 2023 regarding financial scams involving cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), or Tether (USDT).

Investment scams were the most costly, accounting for 71% of total losses, or approximately $3.96 billion. Call center scams and government impersonation scams followed closely, contributing to 10% of losses.

The most vulnerable demographic appears to be individuals over the age of 60, who have reported the most complaints. According to the FBI, their collective losses have exceeded $1.6 billion.

Different types of crypto scams

Scammers often build trust with victims through dating apps or social media before luring them into fraudulent cryptocurrency investments. Some of the scams highlighted by the FBI include investment scams, lottery scams, romance scams, credit card scams, extortion, and ransomware.

Some of these scams are romance scams, commonly referred to as pig slaughter scams, which involve scammers befriending victims under the pretense of a potential love interest.

Victims may be allowed to withdraw small amounts to establish credibility, but eventually find themselves tricked into making larger losses. In some cases, victims are further exploited by fraudulent recovery services that promise to recover stolen funds.

The FBI has warned the public to be extremely cautious when approached for investment opportunities by people they have only met online, stressing that anyone can be a target.