Pennsylvania's Alarming Losses in Cryptocurrency Fraud: FBI Reports Over $5.6 Billion Lost Nationwide in 2023

PITTSBURGH, Pa. (WTAJ) — In a groundbreaking revelation, the Federal Bureau of Investigation (FBI) has published its inaugural Cryptocurrency Fraud Report, highlighting the staggering financial losses incurred due to cryptocurrency-related fraud in 2023. The report, released by the FBI Pittsburgh Field Office, estimates that over $5.6 billion was lost nationwide, with the bureau's Internet Crime Complaint Center (IC3) receiving more than 69,000 complaints related to financial fraud involving cryptocurrencies.

The report indicates that the total dollar amounts lost from these complaints account for nearly 50% of the overall financial losses reported. Alarmingly, there has been a 45% increase in losses compared to the previous year, 2022.

Focusing on Pennsylvania, the state experienced significant losses amounting to $123,530,269, with 1,773 complaints filed with the IC3. This positions Pennsylvania as the 8th highest state in terms of total losses and 9th in the country.

Investment scams involving cryptocurrencies were identified as the most common type of fraud in 2023, followed by tech support scams, personal data breaches, extortion, and confidence/romance scams. Notably, adults aged 60 and above were the most affected demographic, reporting losses exceeding $1.6 billion this year alone.

The FBI's report emphasizes the challenges posed by the decentralized nature of cryptocurrencies, which, coupled with the speed of irreversible transactions, makes them an appealing target for criminals. Once a payment is made, the recipient typically transfers the cryptocurrency to an overseas account for cash-out, complicating the recovery of stolen funds.

To safeguard against such fraud, the FBI has provided several protective measures in its report. Individuals who suspect they have fallen victim to cryptocurrency fraud, or know someone who has, are encouraged to report the incident to the FBI's Internet Crime Complaint Center at ic3.gov. For more detailed tips on protecting your investments, refer to the full report.