The latest report from the Federal Bureau of Investigation shows that Americans lost billions of dollars on cryptocurrency scams in 2023.
Fox News reported that despite claims from so-called “experts” and influencers that cryptocurrency was supposed to give Americans control of their own finances and was completely secure, cryptocurrency scammers have shown that cryptocurrency is easy to steal. The FBI reported earlier this year that Americans lost $5.6 billion on cryptocurrency scams in 2023, representing a 45% increase from 2022.
In its IC3 report, the FBI stated, “Over the years, cryptocurrency’s widespread promotion as an investment vehicle, combined with a mindset associated with the ‘fear of missing out,’ has led to opportunities for criminals to target consumers and retail investors.”
According to the FBI’s Internet Crime Complaint Center (IC3), more than 69,000 people filed complaints in 2023, with the majority of the individuals over the age of 60.
Fox News reported that cryptocurrency scammers primarily target individuals over the age of 60 due to the higher likelihood that the individuals are less familiar with technology. The FBI’s report revealed that roughly 16,806 complaints were filed by individuals over the age of 60 in 2023 and that the individuals lost more than $1.6 billion on cryptocurrency scams.
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According to Fox News, two of the most common types of cryptocurrency scams are investment fraud and relationship-building scams. In the case of investment fraud, cryptocurrency scammers call, text, or email individuals with the promise of huge profits for investing in cryptocurrency. Scammers urge the individuals to quickly invest in cryptocurrency before they miss out on the opportunity.
Investment fraud scammers often prey on individuals who have significant cash to invest and are not experienced with technology. The FBI’s report showed that Americans lost $3.96 billion in investment fraud schemes in 2023, representing a 53% increase from the $2.57 lost in 2022.
In relationship-building scams, cryptocurrency scammers typically use social media, dating apps, networking websites, or encrypted messaging apps to build relationships with various individuals before pushing for them to invest in cryptocurrency. Fox News reported that relationship-building scammers often target individuals a second time by posing as crypto-recovery specialists who claim to be able to help recover the stolen funds.
The FBI noted, “There is one thing these scammers typically will not do — they will not meet with you in real life.” The FBI has also warned Americans, “If an investment opportunity sounds too good to be true, it likely is.”
