FBI: $5.6 Billion Lost to Crypto Fraud in 2023

user avatar

by Giorgi Kostiuk

2 years ago

Made with AI


  1. Seniors as Primary Victims
  2. Main Types of Fraud
  3. Use of Crypto Kiosks

  4. According to the FBI report, crypto fraud led to losses of $5.6 billion in 2023. Seniors were the main victims, losing nearly $1.6 billion.

    Seniors as Primary Victims

    The FBI’s report shows that individuals over 60 were the most frequent targets among the 69,000 crypto frauds last year. This age group alone lost almost $1.6 billion. Investment schemes were responsible for nearly 71% of the fraud cases, while call center fraud and government impersonation scams comprised about 10%.

    Main Types of Fraud

    The majority of complaints and losses originated from the United States, although the FBI received reports from over 200 countries. Many victims fell prey to confidence schemes, where scammers build trust before defrauding their targets. Additionally, the FBI warned about labor trafficking, where individuals are lured into exploitative positions abroad, such as at call centers. These scams often involve “pig butchering,” where victims are promised returns on investments that turn out to be fraudulent. Play-to-earn scams also pose a significant threat. These schemes charge users for tokens needed to play online games but then freeze their wallets, trapping their funds. Another fraudulent activity involves businesses that falsely claim to recover lost cryptocurrency, further victimizing already defrauded customers.

    Use of Crypto Kiosks

    The report notes that cryptocurrency kiosks, or automated teller machines (ATMs), have become a popular tool for scammers. The FBI recorded 5,500 cases involving kiosks, resulting in over $189 million in losses. Scammers favor kiosks due to the anonymity they offer compared to traditional bank transactions. These cases included complaints about customer service issues, government impersonation, extortion, and romance scams. Deputy Assistant Director James Barnacle of the FBI’s Criminal Investigative Division told ABC News that recovering money lost through crypto kiosks is “slim.” He added that the FBI notifies individuals when it discovers they are victims of fraud. Of the 3,000 people notified this year, Barnacle noted that 75% were unaware they had been defrauded.

    The FBI report emphasizes the need for vigilance and awareness when using cryptocurrency, especially among seniors. Scammers continue to use various methods to deceive and steal funds, and it is crucial to remain cautious and informed to protect oneself from such threats.

Tier I

Sector: #18291

Sealed Hiding Place Room

Resource Cache

Resource Cache

Tier I

Requires 25% Tier Progress to Claim
Meme Cache

Meme Cache

Tier I

Requires 50% Tier Progress to Claim
Equipment Cache

Equipment Cache

Tier I

Requires 75% Tier Progress to Claim

After collecting, hiding places will be stored in your inventory and can be opened with Keys.

Other news

Payward to Acquire Saldo Bank for European Banking Expansion

Payward, the parent company of Kraken, plans to acquire Lithuania-based Saldo Bank to enhance its banking capabilities and integrate banking products with crypto services.

user avatarMaria Fernandez

Germany's Sparkassen Group Begins Cryptocurrency Trading Rollout

Germany's Sparkassen savings bank group is starting a phased rollout of cryptocurrency trading within its existing banking app, beginning on October 19, 2023.

user avatarGustavo Mendoza

CME Group to Launch Bitcoin Cash and Uniswap Futures on October 19

CME Group has scheduled the introduction of Bitcoin Cash and Uniswap futures for October 19, providing institutional traders with more cryptocurrency markets.

user avatarRajesh Kumar

Ethereum's Glamsterdam Upgrade Scheduled for Hoodi Test Network

Ethereum's next major upgrade, Glamsterdam, is set to activate on the Hoodi test network on October 26, marking a significant step in testing changes to block production and execution costs.

user avatarMiguel Rodriguez

International Crackdown on West African Scam Networks Results in 28 Arrests

An international effort against West African scam networks has led to 28 arrests and the removal of over 37 million accounts linked to fraudulent activity.

user avatarLuis Flores

Stablecoin Payment Transactions Surge Despite Flat Supply

A new report reveals a significant increase in stablecoin payment transactions, contrasting with stagnant supply levels.

user avatarArif Mukhtar

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.