14 October 2024

FBI Reports Over $5.6 Billion Lost to Cryptocurrency Scams in 2023

The FBI reports that over $5.6 billion was lost to cryptocurrency scams in 2023, with investment fraud being the most significant contributor.

FBI Reports Over $5.6 Billion Lost to Cryptocurrency Scams in 2023

In a startling revelation, the FBI has reported that Americans lost more than $5.6 billion to cryptocurrency scams in 2023, marking a staggering 45% increase in reported losses compared to the previous year. This alarming trend has affected thousands across the nation, highlighting the growing threat of financial fraud in the digital currency space.

The FBI received nearly 70,000 complaints related to cryptocurrency fraud last year, with investment scams accounting for almost $4 billion, or approximately 71% of the total losses. Michael Nordwall, assistant director of the FBI’s criminal investigative division, emphasized the challenges posed by the decentralized nature of cryptocurrencies, stating, "The speed of irreversible transactions and the ability to transfer value globally make cryptocurrency an appealing target for criminals, complicating the recovery of stolen funds."

Many victims are lured into these scams through dating apps and social media platforms, where fraudsters often spend weeks or even months establishing trust before proposing a cryptocurrency investment. Once a victim shows interest, scammers typically direct them to fake websites or apps designed to facilitate the transfer of funds.

Some scams are sophisticated enough to allow victims to withdraw small amounts of money, creating an illusion of legitimacy. However, once the scam is uncovered, victims often find themselves targeted by fake recovery businesses claiming they can help retrieve lost funds.

The FBI urges anyone who has fallen victim to a cryptocurrency scam to report it, as the number of international scammers continues to rise. The complex and opaque nature of cryptocurrency transactions makes it easier for criminals to deceive unsuspecting individuals.

Victims of these scams span various demographics, but the FBI notes that individuals aged 60 and older reported losses totaling $1.6 billion. The agency advises everyone to remain cautious of investment opportunities from individuals they have not met in person.

In a related note, even major organizations like the National Basketball Association (NBA) are not immune to cryptocurrency controversies. Earlier this year, the NBA faced a lawsuit concerning its alleged involvement with Voyager Digital Holdings, a now-defunct cryptocurrency exchange. Plaintiffs claim that the NBA's promotional activities contributed to approximately $4.2 billion in investor losses.

Source: RetailWire