Americans Lost Over $5.6 Billion to Crypto Scams in 2023- FBI

Americans lost more than $5.6 billion to crypto scams in 2023, according to a new report from the FBI. The 2023 Cryptocurrency Fraud Report shows that financial losses involving digital currencies like Bitcoin, Ether, and Tether increased by 45% compared to 2022.

Even though crypto crimes made up only about 10% of all fraud cases reported to the FBI, they caused nearly half of the total money lost to financial scams.

Investment Scams Lead the Way

The biggest losses came from fake crypto investment schemes, which scammed Americans out of $4 billion last year. These scams often trick people by promising huge profits with little risk, playing on the fear of missing out on big opportunities in crypto.

According to the FBI, scammers usually contact victims through dating apps, social media, or email, pretending to be trustworthy. After building up trust, they offer fake investment advice and direct victims to fake websites that look real.

Victims create accounts and send their money, but when they try to withdraw their funds, they find they can’t, or are asked to pay high fees to get their money back. Even after paying, many victims still can’t recover their losses.

How to Avoid Crypto Scams

The FBI warns that people of all ages have fallen for these scams but offers some tips to protect yourself:

1. Be careful with messages from strangers claiming to represent companies, banks, or government agencies. Always double-check their identity by doing your own research.
2. Look out for fake websites that try to copy real businesses. Scammers may change small details, like switching the letter “O” for a zero in the web address (e.g., “C0inbase.com” instead of “Coinbase.com”).
3. Don’t trust promises of quick profits. If an investment offer sounds too good to be true, it probably is.

If you think you’ve been scammed, the FBI encourages you to report it to their Internet Crime Complaint Center.