Americans Lost Billions to Crypto Scams in 2023

According to a recent report from the FBI, Americans lost a staggering $5.6 billion to cryptocurrency scams in 2023. This represents a 45% increase compared to 2022, highlighting the growing threat of financial fraud in the digital currency space.

Even though crypto-related crimes accounted for only about 10% of the financial fraud complaints received by the FBI, the losses from these crimes made up nearly 50% of the total amount that Americans lost to financial schemes last year.

The Most Common Type of Scam: Investment Scams

Investment scams were the most significant source of losses, costing Americans $4 billion. The FBI notes that the promotion of cryptocurrency as an investment vehicle, coupled with a 'fear of missing out' mentality, has created opportunities for criminals to exploit consumers.

These scams often involve fraudsters promising high returns on investments with little to no risk. Victims are typically lured through dating apps, social media, or emails, where the scammers build trust over time before offering investment advice.

Once victims are drawn in, they are directed to seemingly legitimate websites where they can create accounts and invest funds. Unfortunately, when victims try to withdraw their earnings, they often find themselves unable to do so, or are hit with exorbitant fees.

Identifying Potential Crypto Scams

To protect yourself from falling victim to these scams, the FBI offers several key tips:

• Be cautious of unsolicited messages from unknown individuals claiming to represent reputable companies or institutions. Always verify the legitimacy independently.
• Watch for fake websites that mimic legitimate businesses. Look for spelling errors and unusual domain names.
• Be skeptical of promises of quick riches, especially those that involve no risk. If it sounds too good to be true, it probably is.

If you suspect that you've been a victim of financial fraud, including crypto-related scams, the FBI encourages you to file a complaint with their Internet Crime Complaint Center.