Americans Lost $5.6-B Last Year In Crypto Fraud Scams

Americans were duped out of more than $5.6 billion last year through fraud schemes involving cryptocurrency, the FBI reported.

Scammers often initiate contact through dating apps or social media to build trust over several weeks or months before suggesting cryptocurrency investments.

The report highlights a 45% increase in losses compared to 2022, as reported by the Associated Press (AP).

The FBI received nearly 70,000 complaints in 2023 from victims of financial fraud involving Bitcoin, Ether, and other cryptocurrencies. The most prevalent scheme was investment fraud, which accounted for $3.96 billion of the losses.

“The decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals while creating challenges in recovering stolen funds,” wrote Michael Nordwall, assistant director of the FBI’s criminal investigative division.

Scammers often initiate contact through dating apps or social media to build trust over several weeks or months before suggesting cryptocurrency investments, according to the FBI.

Once trust is established, they convince the targets to use fake websites or apps to invest their money, sometimes allowing victims to withdraw small amounts early on to create the illusion of legitimacy.

In some cases, victims are then targeted by fake businesses claiming they can help recover the lost cryptocurrency.

The FBI warns that Americans of all ages can fall victim to such scams and advises extreme caution when presented with investment opportunities from people they haven’t met in person.