While cryptocurrency may not dominate headlines as it did during the 2021-2022 boom, the flow of money continues unabated. Cybercriminals are still exploiting crypto, generating billions in fraudulent income every year.
2023 has emerged as the most lucrative year on record for cryptocurrency scammers, according to recent statistics from federal law enforcement.
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A newly released report reveals that over $5.6 billion in losses were reported in 2023 due to cryptocurrency scams, based on more than 69,000 complaints received by federal authorities.
Crypto Scams Reach New Heights
The findings of the report are particularly noteworthy as 2023 marks the first complete year following the significant disruptions in the cryptocurrency market. The collapse of major firms in 2022, including Celsius and Terraform Labs, significantly impacted the industry, culminating in the bankruptcy of FTX in November 2022. Although some cryptocurrencies and blockchain-based companies have started to recover, mainstream interest has yet to return.
Despite this, cryptocurrency scams appear to be escalating rapidly. The 2023 report indicates a staggering 45 percent increase in crypto scams compared to the previous year.
In fact, losses from cryptocurrency scams in 2023 comprise over half of the total losses reported from all online scams according to previous year statistics. Investment fraud tops the list of issues, with crypto investment scams surging by 53 percent, resulting in total losses of $3.96 billion, compared to $2.57 billion in 2022.
The impact of these scams varies across different age groups. The most severe effects from investment scams were seen among individuals aged 30-49, while individuals over 60 reported the highest total losses, exceeding $1.6 billion from crypto-related scams.
It is essential to note that the actual figures for cryptocurrency scam losses could be significantly higher, as the reported data only reflects the victims’ complaints submitted to authorities.
“Scams targeting cryptocurrency investors are increasing in both severity and complexity,” stated a representative from federal law enforcement. “To combat these crimes effectively, individuals should report any suspicious activities, even if they don’t incur financial losses. This information enables us to stay ahead of emerging schemes and utilize the latest technologies to protect the public and pursue perpetrators.”
Topics
Cybersecurity
Cryptocurrency
