Cryptocurrency Fraud Surges by 45% in 2023, Resulting in $5.6 Billion in Losses

In 2023, consumers experienced staggering losses exceeding $5.6 billion due to cryptocurrency-related fraud, marking a significant 45% increase from the previous year, according to estimates released by the US Federal Bureau of Investigations (FBI).

The FBI's Internet Crime Complaint Center reported that it received nearly 69,500 complaints from consumers both domestically and internationally last year. Notably, cryptocurrency-related complaints constituted approximately 10% of the total financial fraud complaints, yet these cases accounted for nearly 50% of the overall financial losses reported.

The resurgence of interest in cryptocurrencies, particularly following a downturn in the market in 2022, has attracted the attention of criminals. Bitcoin, for instance, saw its value more than double in 2023 and has continued to rise by about 35% in 2024.

Michael Nordwall, assistant director of the FBI's Criminal Investigative Division, highlighted the growing trend, stating, "As the use of cryptocurrency in the global financial system continues to expand, so too does its exploitation by criminal actors."

Investment scams emerged as the most prevalent form of cryptocurrency fraud, with losses from these scams representing nearly 71% of the total reported losses. Additionally, call center frauds, including government impersonation scams, accounted for around 10% of the cryptocurrency-related losses reported in the FBI's findings.