Cryptocurrency-Related Investment Scams Rise by 53% in 2023
In a stark revelation by the FBI, cryptocurrency-related investment scams now represent 86% of all investment fraud losses in the United States for the year 2023. The report highlighted a significant rise in crypto fraud, escalating from $2.57 billion in 2022 to an alarming $3.94 billion in 2023, marking a 53% increase. This surge underscores the growing allure of cryptocurrency investments among fraudsters, aiming to exploit the booming digital asset market.
Despite the overall investment fraud losses reaching $4.57 billion in 2023, the staggering $3.94 billion lost to crypto scams accounted for nearly 86% of the total, illustrating the dominant role of cryptocurrency in the investment fraud landscape. The FBI pointed out an increasing trend of victims being drawn into crypto scams promising significant investment returns.
Among the prevalent crypto scams, romance scams have emerged as a significant method where criminals, using fake online identities, ensnare victims with the promise of love before convincing them to send cryptocurrency, only to disappear thereafter. Reports from Chainalysis in December 2023 disclosed that romance scams were responsible for at least $374 million in suspected stolen cryptocurrency in 2023.
Furthermore, Coin Telegraph reported on January 1 that over 324,000 cryptocurrency users fell victim to phishing scams in 2023, with approximately $295 million in digital assets lost to wallet drainers. However, this surge in victims of cryptocurrency scams is not confined to the United States alone; other countries worldwide are experiencing similar challenges.
In April 2023, the Australian Competition and Consumer Commission (ACCC) reported that Australians lost AU$221.3 million ($146.9 million) to investment scams using cryptocurrency as a payment method in 2022, a staggering increase of 162.4% from 2021. This global trend underscores the pressing need for increased awareness and stronger protective measures against the rising tide of cryptocurrency-related investment scams.
