• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

FBI: $5.6 Billion Lost to Crypto Fraud in 2023

user avatar

by Giorgi Kostiuk

a year ago


  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.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

chest

Other news

Potential Implications for MicroStrategy from Strive's Model

chest

Strive Asset Management's recent announcement regarding perpetual preferred stock could significantly impact MicroStrategy, which is facing a $3 billion convertible debt burden by early 2025. Adopting Strive's model may help MicroStrategy avoid a liquidity crisis and improve its financial standing.

user avatarTando Nkube

Strive's Perpetual Preferred Stock Aims to Restructure Convertible Debt

chest

Strive Asset Management is issuing perpetual preferred stock to replace its convertible debt, enhancing financial flexibility and reducing future liabilities.

user avatarKofi Adjeman

Strive Asset Management Announces Perpetual Preferred Stock Issuance

chest

Strive Asset Management plans to issue perpetual preferred stock to enhance its financial stability and address the challenges of significant Bitcoin holdings.

user avatarSon Min-ho

Institutional Interest in Canton CC Grows Amid Market Fluctuations

chest

Canton's institutional narrative strengthens as it ties to broader blockchain infrastructure developments.

user avatarAyman Ben Youssef

Operation RapTor Targets Fentanyl Trafficking on Dark Web

chest

Operation RapTor is a large-scale international law enforcement initiative targeting dark web drug markets, resulting in the arrest of 270 individuals and the seizure of over $200 million in cash and digital assets.

user avatarNguyen Van Long

New Jersey Man Sentenced to 12 Years After Using Bitcoin to Pay Chinese Fentanyl Suppliers

chest

A Passaic County man, William Panzera, has been sentenced to 12 years in federal prison for his role in a large-scale fentanyl distribution and money laundering conspiracy that involved the use of Bitcoin to pay overseas drug suppliers.

user avatarSatoshi Nakamura

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.