FBI Report Shows Crypto Crime Surged by 53% in 2023

FBI Report Shows Crypto Crime Surged by 53% in 2023

An official publication from the United States Federal Bureau of Investigation (FBI) demonstrated that crypto-related crime has risen year-over-year. After analyzing data on financial matters, the FBI noted that investors suffered considerable losses in crypto investment in 2023.

The law enforcers observed that the notorious criminal had shifted their focus to the crypto sector to launch their fraudulent schemes. Compared to the previous year, the FBI complained that the investors lost approximately $4.57 billion in 2023.

Rise of Crypto Scam

The report demonstrated that most investment losses were witnessed in the crypto sector. The FBI observed that crypto-related losses rose to $3.94 billion, a 53% increase from $2.57 billion in 2022. This demostrated that crypto scams constituted 86% of total investment losses.

The increase in crypto fraud in 2023 prompted the FBI to study the factors contributing to investment losses extensively. After careful consideration, the law enforcer lamented that the desire to maximize profits has exposed most of the investor to loss of their hard-earned money.

Most crypto firms have recently deployed unique strategies, such as promising high returns on investment to attract a large following. Unknowingly, the novice traders considered investing in these investments only to find themselves scammed.

FBI Observe 53% Increase in Crypto Scam 

Beyond this, the FBI noted that criminals use different types of scams to lure investors into their unlawful activities. The law enforcer realized that the pig butchering scam was the most practical approach the criminals used.

In particular, most reported cases involved a scammer using a fake identity to establish a romantic relationship with the victim. Afterward, the criminals convince the victim to invest in a fake opportunity, which turns out to be a fraud.

Citing a Chainalysis 2023 report, the FBI observed that approximately $374 million worth of crypto was stolen through romance scams. The Chainalysis report echoes a study from Scam Sniffer titled “2023 Wallet Drainer Report,” indicating that 324,000 crypto enthusiasts fell for phishing scams.

Factors Contributing to Investment Losses

The Scam Sniffer stated that the scammer used various social media platforms to share the fake links to the crypto users. After clicking on the suspicious link, the investor enabled the criminals to gain access to their confidential data such as bank details and personal information.

In 2023, Scam Sniffer regretted that the criminals had drained $295 million from digital wallets. The multimillion losses suffered in the crypto sector drew the attention of global regulators in probing the matter.

In April 2023, the Australian Competition and Consumer Commission (ACCC) complained that $146.9 million,  was lost in crypto investment in 2022.

Commenting on the surge in crypto crime in Australia, the deputy chair of ACCC, Catriona Lowe, explained that criminals leveraged the power of emerging technology to defraud investors. The executive lamented that the criminals were advancing their skills and expertise to launch dubious schemes.

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