The Federal Bureau of Investigation’s Internet Crime Complaint Center has released its cryptocurrency fraud report for 2023, revealing a staggering $5.6 billion in losses by Americans due to crypto-related scams. This marks a 45% increase from the previous year.
According to the report, cryptocurrency-related complaints accounted for 10% of all complaints received by the FBI, but represented nearly half of the total financial losses reported for the year. This disproportionate impact underscores the severity of crypto fraud.
Among the 69,000 crypto-related complaints, individuals over 60 were the most frequent victims, suffering losses of almost $1.6 billion. Investment schemes dominated the fraudulent activities, accounting for nearly 71% of the cases, while call center fraud and government impersonation scams made up about 10%.
The report also highlighted the risk of labor trafficking, where workers are lured into exploitative positions abroad, often in call centers running “pig butchering” scams. These scams typically involve building trust with victims over time before persuading them to invest in fraudulent schemes.
Other prevalent fraudulent activities included play-to-earn scams, where users are charged to purchase tokens for online games before having their wallets frozen, and fake crypto recovery services that further victimize those who have already lost funds.
James Barnacle, Deputy Assistant Director of the FBI’s Criminal Investigative Division, warned that the chances of recovering money lost through crypto kiosks are “slim.” He also revealed a startling statistic: of the 3,000 people notified by the FBI about being fraud victims this year, 75% were unaware they had been targeted.
