365Crypto
FBI Reports $5.6 Billion Lost to Cryptocurrency Fraud in 2023
Cryptocurrency Scams on the Rise
In 2023, Americans lost $5.6 billion to cryptocurrency fraud, a 45% increase from 2022, according to the FBI’s Internet Crime Complaint Center. While crypto-related complaints made up only 10% of the total received, they accounted for nearly 50% of the financial losses. The most vulnerable group targeted by these scams were people over 60, who lost approximately $1.6 billion.
Common Types of Crypto Scams
The majority of crypto fraud—about 71%—was related to investment schemes. Scammers also used call center fraud and government impersonation to deceive victims. Many of these frauds involve “confidence schemes,” where scammers build trust with victims online but avoid meeting in person. The FBI warns that if you’ve never met someone face-to-face, be wary of their investment advice.
Labor Trafficking and Other Risks
In addition to financial scams, Americans are at risk of labor trafficking, where workers are lured into exploitative jobs abroad, often at call centers running crypto scams. Scams like “pig butchering”* involve foreign workers being forced to commit fraud after being coerced with threats of debt repayment.
Other fraudulent activities include “play-to-earn” gaming scams, where victims are tricked into buying tokens for a game, only to have their crypto wallets frozen. Scammers posing as companies that recover lost crypto also target victims.
Crypto ATMs: A Tool for Scammers
Crypto ATMs, or kiosks, are popular with scammers due to the anonymity of transactions. In 2023, there were 5,500 cases involving these kiosks, resulting in over $189 million in losses. Scams often involve fake customer service, government impersonation, extortion, and romance scams. The FBI warns that recovering funds lost through crypto ATMs is very difficult.
Technical Terms
- Confidence schemes: Scams where fraudsters gain a victim’s trust before exploiting them financially.
- Pig butchering scams: A form of fraud where victims are manipulated into investing in fake opportunities before their assets are stolen.
- Crypto ATMs (kiosks): Machines that allow users to buy or sell cryptocurrency, often used by scammers due to the anonymity they offer.
