- The FBI reported a 45% surge in losses tied to crypto fraud in 2023, with over $5.6 billion in losses from nearly 70,000 complaints.
- Crypto accounted for 10% of total financial fraud complaints but about half of the total losses last year, according to the FBI’s annual report.
- The FBI warned about the risks of false job advertisements linked to labor trafficking at scam compounds overseas, as well as the rising use of crypto kiosks to perpetrate fraudulent activity.
The US Federal Bureau of Investigation (FBI) recorded a 45% uptick in losses tied to crypto scams in 2023, according to an annual financial fraud report.
Details from FBI Report
The FBI’s Internet Crime Complaint Center received over 69,000 crypto-related complaints, which resulted in $5.6 billion in losses in 2023, the agency said in its annual report.
Crypto accounted for 10% of total financial fraud complaints and about half of the total losses.
People over the age of 60 filed the most complaints in 2023, followed by consumers in their 30s and 40s. Investment scams were the most reported crime, according to the report.
“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 – particularly those who seek to profit from investing but are unfamiliar with the technology and the attendant risks,” the agency said in the report.
Warnings from Federal Agencies
Federal agencies have issued warnings about fraud tied to the crypto industry. Earlier this year, the US Commodity Futures Trading Commission released an alert about dating and messaging apps being used to conduct scams or give investment advice.
Other FBI Concerns
On Monday, the FBI warned US citizens and people who live abroad to be vigilant of risks of false job advertisements that are linked to labor trafficking at scam compounds overseas.
These compounds hold workers against their will and use intimidation to force the workers to participate in scam operations, the FBI said.
Separately, the use of crypto kiosks to perpetrate fraudulent activity is rising, according to the agency’s data.
Typically criminals give detailed instructions to individuals to include how to withdraw cash from their bank, how to locate a kiosk and how to deposit and send funds using the kiosk, the agency wrote, adding that QR codes and other payment innovations are facilitating financial scams.
