As a seasoned crypto investor with decades of experience under my belt, I can’t help but feel a mix of dismay and concern when reading about the staggering amount of money lost to cryptocurrency scams in 2023. The FBI report reveals a startling increase in fraud cases, with Americans losing a whopping $5.6 billion – a 45% rise from the previous year.


The FBI’s Internet Crime Complaint Center (IC3) published its 2023 report on cryptocurrency fraud, disclosing that U.S. residents experienced a staggering $5.6 billion in losses from crypto-related frauds. This figure represents a 45% rise compared to the preceding year.

The report shows that about one out of ten complaints submitted to the FBI concerned scams involving cryptocurrencies. Interestingly, these complaints accounted for almost half of the total monetary losses. This underscores the damaging impact of cryptocurrency fraud, as portrayed in the article.

75% of Fraud Victims Unaware They’ve Been Scammed, FBI Reports

Based on the findings in the report, individuals aged 60 and above were found to be the most susceptible to the 69,000 reported cryptocurrency complaints. They collectively lost approximately $1.6 billion. The primary type of fraud detected was investment schemes, which accounted for a staggering 70% of all cases. Additionally, call center scams and government impostor scams made up about 10% of the total reports.

Another disturbing fact is the possibility of labor trafficking being connected to crypto scams. People are tricked into taking jobs overseas, especially in call centres, due to ‘pig butchering’ scams. These schemes entail the development of friendly relationships with the victims before making them part with their money in fraudulent business ventures.

Additional common fraud schemes uncovered include ‘play-to-win’, in which participants purchase game tokens only to find their digital wallets locked, and false ‘cryptocurrency reclamation services’ that target individuals who have previously lost their funds.

James Barnacle, the Deputy Assistant Director in the FBI’s Criminal Investigative Division, cautioned that getting back money lost through these scams is likely to be rare. He also disclosed a troubling fact: Out of the 3,000 individuals who have received an FBI notification about being victims of fraud this year, a staggering 75% remain unaware that they have been victimized.

The latest findings clearly show that the issue of fraudulent activities in cryptocurrencies is growing progressively worse, emphasizing the need for more proactive action to tackle it.

 

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2024-09-11 17:15