FBI Reports 45% Surge in Cryptocurrency Fraud, Exceeding $5.6 Billion in 2023

In a startling revelation, the FBI reported that victims of cryptocurrency fraud lost over $5.6 billion in 2023, marking a staggering 45% increase from the previous year. This surge in losses is primarily attributed to a rise in crypto-related investment scams, which accounted for nearly $4 billion in reported losses compared to $2.57 billion in 2022.

This report is significant as it is the first time the FBI has released a detailed analysis specifically focused on cryptocurrency fraud, derived from a broader annual fraud data set. Notably, crypto-related fraud constituted nearly half of the record $12.5 billion in online fraud losses reported to the FBI last year.

The FBI aims to enhance public awareness regarding the dangers of cryptocurrency fraud and encourages victims to report incidents promptly to aid in the recovery of stolen funds. An FBI official highlighted the severe financial impact on victims, stating, "Many victims have accumulated massive debt to cover losses from these fraudulent investments."

The report emphasizes an ongoing threat to the American public posed by international scammers. The official noted, "Cryptocurrencies are intertwined with every type of threat the FBI investigates."

The FBI's jurisdiction covers a wide range of digital crimes, including ransomware attacks and tech-support scams, which collectively cost the global economy billions of dollars each year. The latest findings indicate that cryptocurrency has become the preferred medium for many of these illicit schemes.

The report also reveals an alarming trend of scammers from various regions, particularly those operating investment scams that exploit victims' trust to lure them into investing in fake cryptocurrency ventures. Victims span all age groups, with individuals over 60 reporting losses totaling $1.6 billion in 2023 alone.

A CNN investigation last year highlighted the plight of tens of thousands of American victims ensnared in complex crypto-investment schemes, often orchestrated by Chinese crime syndicates based in conflict-ridden Myanmar and other Southeast Asian nations.