Americans Lost $5.6 Billion In Cryptocurrency Fraud Scams In 2023: FBI Report

Americans were duped out of more than $5.6 billion in 2023 through fraud schemes related to cryptocurrency. The Federal Bureau of Investigation (FBI) mentioned this data in the first annual Cryptocurrency Fraud Report, released this week. FBI received 69,000 complaints last year by victims of financial fraud involving bitcoin, ether, and other cryptocurrencies.

"While the number of cryptocurrency-related complaints represents only about 10 percent of the total number of financial fraud complaints, the losses associated with these complaints account for almost 50 percent of the total losses," said Michael Nordwall, assistant director of the FBI’s criminal investigative division, in the report.

Meanwhile, exploitation of cryptocurrency was most pervasive in investment scams, where losses accounted for almost 71% of all losses. Call center frauds, including tech/customer support scams, accounted for about 10% of losses associated with cryptocurrency. The FBI says that criminals use dating applications, social media platforms, or professional networking sites to establish relationships with their targets. Once trust is established, criminals introduce the topic of cryptocurrency investment.