FBI Report: Americans Lose $5.6 Billion to Cryptocurrency Fraud in 2023

A recent report released by the FBI’s Internet Crime Complaint Center (IC3) revealed that cryptocurrency fraud hit unprecedented levels in the U.S. in 2023. It stated that Americans lost around $5.6 billion in fraud.

The report states that cryptocurrency complaints represented only 10% of all crime reports, but they accounted for nearly 50% of the total financial losses.

The digital asset landscape faces growing challenges where the anonymity of transactions creates fertile ground for exploitation. Among the 69,000 crypto-related complaints, individuals over 60 were the most targeted and frequently victimized. This age group lost a combined total of $1.6 billion.

Among all fraud cases, investment schemes were the most prominent. Of these, around 71% were crypto-related scams. Common ones like pig butchering schemes often prey on individuals’ trust and lack of knowledge about digital assets.

Scammers primarily use deception to convince people that their investments are legitimate. As per the FBI, these scammers typically avoid face-to-face interactions.

In the report, the FBI also makes a mention of the labor trafficking issue connected to cryptocurrency fraud. This means that workers are often lured abroad to work at call centers, only to find themselves in exploitative situations.

Most of the call centers make use of foreign labor to defraud victims. People running these schemes frequently engage in seizing workers’ passports and documents, leaving them to further exploitation.

Apart from this, the emergence of cryptocurrency ATMs or kiosks has become another tool for scammers. Around 5,500 cases involving cryptocurrency ATMs have resulted in $189 million in losses, as per the FBI.

The FBI also noted that most criminals prefer kiosks because of the anonymity they offer. This lets them engage in various fraudulent activities, including government impersonation and romance scams.

These scams leave behind little to no possibility of recovering money. Another reason for criminals exploiting cryptocurrency is due to its decentralized nature. Additionally, crypto transactions are irrevocable and move really fast.

In the report, the FBI made a mention of a few tips to help protect oneself from crypto recovery schemes. It advised people to hang up on unsolicited calls immediately. Also, a person must never share his/her personal whereabouts or download any suspicious-looking applications.

The FBI reminds users to be cautious of get-rich-quick schemes and to be on the lookout for domain or website names, especially those that impersonate legitimate financial institutions and crypto exchanges.

Lastly, the FBI noted that individuals must invest on the basis of their financial objective and always seek the advise of a licensed financial advisor.

Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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