The Federal Bureau of Investigation (FBI) has sounded the alarm on a sharp increase in cryptocurrency-related investment scams. In a recent revelation, the bureau underscored that these scams accounted for the majority of investment fraud losses in the U.S. during 2023, with a staggering 53% rise from the previous year.
Cryptocurrency Frauds Dominate Losses
The FBI’s findings display a concerning leap in financial damages due to crypto scams, which soared to roughly $3.94 billion from $2.57 billion in 2022. These figures represent a dominant 86% of total investment scam losses, indicating a surge in deceptive schemes that target and exploit individuals across the country.
Romance Scams: A Growing Threat
The FBI has cautioned that a growing number of people are becoming prey to crypto investment scams, with swindlers promising large returns to entice their victims. Among these, romance scams have been particularly nefarious, with criminals creating fake online personas to foster relationships and manipulate victims into transferring cryptocurrency, only to vanish with the funds.
In a striking report, the blockchain analysis company Chainalysis highlighted that romance scams led to suspected losses of at least $374 million in cryptocurrencies in 2023. They reported that over 324,000 users fell prey to such deceit, with an approximate $295 million stolen from crypto wallets through varied tactics, including phishing.
Global concern over these scams is mounting, with countries like Australia also reporting substantial losses to such frauds. The increasing popularity of cryptocurrencies underscores the critical need for investors to remain vigilant and informed to safeguard their assets against such sophisticated scams.