Cryptocurrency Fraud Results in Over $5.6 Billion Losses in 2023, Massachusetts Hit Hard

In a staggering revelation, the FBI has reported that over $5.6 billion was lost to cryptocurrency fraud schemes in 2023, with nearly $100 million of that amount coming from Massachusetts alone. This alarming figure highlights the growing trend of cryptocurrency-related scams that have plagued investors and consumers alike.

Throughout the year, the FBI's Internet Crime Complaint Center received more than 69,000 complaints related to cryptocurrency fraud. Massachusetts ranked among the top 20 states with 1,216 reported cases, underscoring the widespread impact of these scams.

California topped the list, suffering losses exceeding $1 billion due to various fraudulent schemes. The FBI's report indicates that the unique nature of cryptocurrencies, which bypass traditional financial intermediaries, has made them a prime target for criminal activities such as theft, fraud, and money laundering.

The types of scams reported range widely, including tech support fraud, romance scams, and government impersonation schemes. However, investment fraud emerged as the most prevalent issue, accounting for approximately $3.9 billion in reported losses. This alarming trend has left many individuals grappling with significant debt as they attempt to recover from these fraudulent investments.

FBI Director Christopher Wray emphasized the escalating severity and complexity of scams targeting cryptocurrency investors, stating, "Scams targeting investors who use cryptocurrency are skyrocketing in severity and complexity."

The report also revealed that individuals aged 30 to 49 filed the majority of cryptocurrency investment fraud complaints. However, it is the older demographic, particularly those over 60, who have suffered the highest financial losses, totaling more than $1.24 billion.

In light of these findings, the FBI urges anyone who has fallen victim to cryptocurrency fraud to report their experiences through ic3.gov, regardless of whether they experienced a financial loss. This initiative aims to combat the rising tide of cryptocurrency scams and protect potential victims from future fraud.