Crypto scams grew by practically 50 p.c with over $5.6 billion in losses final yr

Cryptocurrency is probably not within the highlight like through the 2021 to 2022 crypto increase, however that does not imply the cash is not flowing. Cybercriminals are nonetheless using crypto to generate billions of {dollars} in fraudulent earnings every year.

The truth is, based on the FBI, 2023 was essentially the most profitable yr but for cryptocurrency scammers.

A brand new FBI report launched on Monday says greater than $5.6 billion in losses have been reported in 2023 because of cryptocurrency scams. The info comes from greater than 69,000 complaints the FBI’s Web Crime Criticism Heart acquired final yr. 

Crypto scams reported to the FBI over time.
Credit score: FBI

Crypto scams larger than ever earlier than

The FBI’s cryptocurrency rip-off report is particularly fascinating since 2023 was the primary full yr following the crypto increase. The crypto business was shaken up in 2022 when various crypto tokens collapsed following the downfall of huge crypto companies like Celsius and Terraform Labs. Then in November 2022, one of many largest crypto exchanges, FTX, went bankrupt. Whereas some crypto tokens and blockchain-based firms have since bounced again, the business has but to get better its mainstream attraction.

Cryptocurrency scams, nonetheless, seem like going stronger than ever earlier than. The FBI’s 2023 cryptocurrency report exhibits that crypto scams grew 45 p.c in comparison with the yr earlier than.

The truth is, 2023 losses from cryptocurrency scams now make up greater than half of the overall variety of losses from all on-line scams from the FBI’s 2022 report.

In response to the FBI, funding fraud is the most important of the cryptocurrency scams. The report discovered that crypto funding scams particularly elevated by 53 p.c, with $3.96 billion in losses in comparison with 2022’s $2.57 billion. 

Various kinds of scams affected age demographics otherwise. For instance, these within the 30-39 and 40-49 age teams have been most affected by crypto funding scams. Nonetheless, essentially the most complaints reported and total loss totals have been from these over 60. In response to the FBI, greater than $1.6 billion in crypto-related rip-off losses got here from the over 60 age group.

After all, the seemingly whole of crypto rip-off losses is way larger than what’s within the FBI report because the company can solely embrace information despatched to them by the victims.

“Scams concentrating on buyers who use cryptocurrency are skyrocketing in severity and complexity,” mentioned FBI Director Christopher Wray within the bureau’s assertion on the report. “One of the simplest ways to assist cease these crimes is for folks to report them to ic3.gov, even when they didn’t undergo a monetary loss. The knowledge permits us to remain on prime of rising schemes and criminals’ use of the newest applied sciences, so we will hold the American public knowledgeable and go after those that commit these crimes.”