The FBI’s latest report from its Internet Crime Complaint Center (IC3) has shed light on the increasing scale of cryptocurrency-related fraud, with a staggering $5.6 billion in losses reported in 2023. This represents a sharp 45% increase compared to the previous year, driven by a rise in investment scams and fraudulent schemes that have exploited the decentralized nature of cryptocurrencies.
According to the report, IC3 received more than 69,000 complaints involving crypto assets such as Bitcoin, Ethereum, and Tether. While cryptocurrency fraud only made up 10% of all financial crime reports, it accounted for nearly half of the total losses, highlighting the significant impact on victims.
One of the most striking revelations is the financial toll on older individuals. The report indicates that people over the age of 60 suffered the greatest losses, reporting over $1.24 billion in total. Victims in this age group are often targeted due to their lack of familiarity with emerging technologies, making them vulnerable to scams that promise high returns.
The FBI’s report also shows that fraudulent schemes like “liquidity mining” and fraudulent “play-to-earn” gaming apps are among the newest methods used by criminals to exploit investors. In liquidity mining scams, fraudsters convince victims to link their cryptocurrency wallets to fake platforms, draining their funds under the guise of offering lucrative daily returns.
Additionally, scammers lure victims into fake play-to-earn games, where they promise cryptocurrency rewards for simple in-game tasks. However, once the victims stop depositing funds, the scammers steal their assets using malicious software embedded in the game.
Investment scams, accounting for 71% of crypto-related losses, remain the dominant fraud category. The combination of the decentralized nature of cryptocurrencies and their irreversible transactions makes them ideal for scammers to exploit. The FBI warns that unless users remain vigilant, these frauds could continue to rise in the coming years.
