In 2023, cryptocurrency played a significant role in investment fraud in the U.S., according to a new report by the FBI. The report, compiled by the Internet Crime Complaint Center (IC3), revealed that 87% of all investment fraud cases last year involved crypto. Losses from these scams totaled a massive $3.96 billion, a sharp increase from $3.3 billion in 2022 and a far cry from the $253 million lost in 2018.
Rising Fraud and Victim Losses
The report highlighted a worrying trend: the number of victims and the average loss per victim have increased dramatically. The average loss per person reached $115,499 in 2023, up from $68,496 just five years ago. The number of reported victims also skyrocketed, from 3,693 in 2018 to nearly 40,000 last year.
Millennials and Gen X individuals, aged 30-50, were the most targeted groups, though victims ranged in age, with some as young as 20 and others over 60.
New Tactics by Hackers
The FBI also warned that hackers and scammers are becoming more sophisticated. Tactics like "pig butchering," where criminals build fake romantic relationships online to gain trust before asking for crypto investments, are on the rise. The agency also cautioned that Bitcoin ETF issuers have become a target for social engineering attacks, making it difficult to detect these scams.
The report emphasizes that the best way to protect yourself is through thorough research, avoiding high-pressure sales tactics, and consulting licensed financial advisors before making any investment decisions.
Information source: Decrypt
