Staggering Losses in Cryptocurrency Fraud: Pennsylvania's $123 Million Impact Revealed

PITTSBURGH, Pa. (WTAJ) — The Federal Bureau of Investigation (FBI) has unveiled its inaugural Cryptocurrency Fraud Report, revealing alarming statistics regarding financial losses tied to cryptocurrency fraud in 2023. According to the report from the FBI Pittsburgh Field Office, an estimated $5.6 billion was lost nationwide due to cryptocurrency-related fraud, with the FBI's Internet Crime Complaint Center (IC3) receiving over 69,000 complaints.

The report highlights that the financial losses reported account for nearly 50% of the total losses, indicating a significant rise in fraudulent activities. In fact, there was a staggering 45% increase in losses compared to the previous year, 2022.

Focusing on Pennsylvania, the state experienced 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 dollar losses and 9th in the nation.

The FBI's findings indicate that investment scams involving cryptocurrency were the most common type of fraud reported in 2023. Other prevalent scams included tech support fraud, personal data breaches, extortion, and confidence/romance scams. Notably, adults aged 60 and above were the most affected demographic, collectively losing over $1.6 billion this year.

The FBI's report emphasizes the challenges posed by the decentralized nature of cryptocurrency, which allows for rapid, irreversible transactions and the ability to transfer funds globally. This makes cryptocurrency an appealing target for criminals, complicating the recovery of stolen assets. Once a payment is made, the recipient typically converts the cryptocurrency into cash through overseas accounts, making recovery efforts difficult.

To safeguard your finances against crypto fraud, the FBI has provided several protective tips in its report. Individuals who suspect they have fallen victim to cryptocurrency fraud, or know someone who has, are encouraged to file a report with the FBI’s Internet Crime Complaint Center at ic3.gov.