Key Points
- Cryptocurrency-related fraud complaints to the FBI’s Internet Crime Complaint Center (IC3) reached 69,468 in 2023, with losses totaling $5.6 billion, a 45% increase from 2022.
- Investment fraud accounted for the majority of cryptocurrency-related losses, with over $3.96 billion stolen through various schemes targeting investors.
The Federal Bureau of Investigation (FBI) has released its 2023 Cryptocurrency Fraud Report, revealing a significant increase in complaints and financial losses related to cryptocurrency scams. The report, compiled by the FBI’s Internet Crime Complaint Center (IC3), highlights the growing threat of cryptocurrency-related fraud and the sophisticated tactics employed by cybercriminals.
Investment Fraud Dominates Cryptocurrency Losses
According to the report, investment fraud schemes were responsible for the lion’s share of cryptocurrency-related losses, accounting for nearly $4 billion in stolen funds. These schemes often involve criminals building trust with victims through social media or dating apps before introducing fraudulent investment opportunities. The FBI noted that many individuals have accumulated massive debt trying to recover losses from these fraudulent investments.
Emerging Trends: Liquidity Mining and Play-to-Earn Gaming Scams
The FBI report also shed light on new and evolving cryptocurrency fraud tactics. Liquidity mining schemes, which promise high daily returns for staking cryptocurrency in fraudulent pools, have become increasingly prevalent. Similarly, fake play-to-earn gaming applications have emerged as a new vector for cryptocurrency theft, with criminals creating games that offer financial incentives but ultimately drain victims’ wallets.
