The FBI released a report on Monday revealing that Americans fell victim to over $5.6 billion in cryptocurrency fraud schemes last year, marking a 45% increase from 2022. The report, which can be accessed here, highlights the growing prevalence of financial fraud involving bitcoin, ether, and other cryptocurrencies.
According to the FBI, there were nearly 70,000 complaints in 2023 related to cryptocurrency fraud, with investment scams accounting for the majority of losses at $3.96 billion.
Michael Nordwall, assistant director of the FBI’s criminal investigative division, noted that the decentralized nature and quick transactions of cryptocurrency make it an appealing choice for criminals, posing challenges in recovering stolen funds.
Scammers often initiate contact through dating apps or social media to gain the trust of their victims before introducing them to cryptocurrency investments. They use fake websites or apps to convince victims to invest, sometimes allowing them to withdraw small amounts early on to appear legitimate.
In some cases, victims are targeted by fraudulent businesses promising to help them recover lost cryptocurrency.
The FBI cautions that individuals of all ages can be targeted by these scams and advises caution when presented with investment opportunities from unfamiliar sources.
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