By Steve Neavling
Americans were swindled out of more than $5.6 billion in cryptocurrency scams last year, according to a new FBI report.
The staggering figure represents a 45% rise in losses compared to 2022.
The FBI documented nearly 70,000 complaints in 2023 from victims of financial fraud schemes involving cryptocurrencies like bitcoin and ether. Investment fraud was the most prevalent type of scam, responsible for $3.96 billion of the total losses.
“The decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals, while creating challenges to recover stolen funds,” Michael Nordwall, assistant director of the FBI’s criminal investigative division, wrote.
Scammers often initiate contact via dating apps or social media, gaining the victim’s trust over time before recommending fraudulent cryptocurrency investments, the FBI reported. Victims are lured into using fake websites or apps, where they’re sometimes allowed to withdraw small sums early on to create an illusion of legitimacy.
In some instances, the victims are further exploited by sham businesses offering to help them recover their lost cryptocurrency, according to the FBI.
The FBI warns that these scams can affect people of all ages and advises extreme caution when considering investment offers from individuals they haven’t met in person.
