- Investment Scams Dominate Fraud Losses
- Emerging Scam Techniques
- Connection Between Fraud and Labor Trafficking
The Federal Bureau of Investigation (FBI) has released a report revealing that Americans lost $5.6 billion to cryptocurrency fraud in 2023. This represents a 45% increase from the previous year, indicating a significant rise in digital currency scams.
Investment Scams Dominate Fraud Losses
The FBI's report shows that investment frauds account for 71% of the total losses. Many of these scams are conducted via social media, email, or text message, offering high returns on investment. Scammers build trust over time and then move communications to encrypted apps like WhatsApp.
Emerging Scam Techniques
The report identifies several prominent types of scams contributing to the massive losses: **Call Center Scams**: Representing about 10% of the total losses, these scams include fake tech support and impersonations of government agencies. **Cryptocurrency Kiosks**: These machines allow users to exchange cash for digital currencies, creating significant vulnerabilities that resulted in losses exceeding $189 million.
Connection Between Fraud and Labor Trafficking
The FBI report also touches on the connection between crypto fraud and labor trafficking. Many scammers, particularly those operating in 'pig butchering' schemes, are victims of human trafficking forced to participate in fraudulent operations. In response to the surge in fraud, new methods such as the ZERO-KYC mechanism have been proposed.
The FBI urges individuals to exercise extreme caution when presented with investment opportunities from unknown sources.
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