Cryptocurrency Losses Soared to $5.6 Billion in 2023, the FBI Warns

The FBI's latest cryptocurrency fraud report shows a staggering $5.6 billion in cryptocurrency losses in 2023, a 45% jump from 2022. Investment frauds drove this increase, particularly through fake apps and schemes like "pig butchering.”

Regional Breakdown: Who’s Lost the Most?

The US accounted for $4.8 billion of the losses, with California leading at $1.15 billion. Next is Texas with $412 million in losses, Florida with $390 million, and New York with $317 million.

While every region of the country has been affected, it’s clear that more affluent states with higher rates of cryptocurrency adoption are more likely to be targeted.

Other regional breakdowns put the Cayman Islands with losses of $196 million, Mexico with $127 million, Canada with $72 million, the UK  with $59 million, India with $44 million, and Australia at $25 million on the fraud crypto fraud map.

A Surge in Cryptocurrency Fraud

Cryptocurrency has become a highly attractive target for scammers, and data from the FBI’s Internet Crime Complaint Center (IC3) reveals that the financial toll from these fraudulent activities continues to grow at an alarming pace. While cryptocurrency offers numerous benefits like decentralization and anonymity, it also opens the door to complex schemes designed to exploit these features.

“As the use of cryptocurrencies grows in popularity for investors, criminals are deploying increasingly complex tactics to deceive and exploit the public,” Wayne A. Jacobs, special agent in charge of FBI Philadelphia said. “We urge consumers to stay vigilant when navigating this landscape and to report any suspected fraud to the FBI through the Internet Crime Complaint Center at ic3.gov.”

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Investment scams account for most of the cryptocurrency losses, including:

• Pig Butchering Scams: These involve scammers building a fake relationships with victims to persuade them to invest in cryptocurrency. Once trust is built, the scammer manipulates the victim into making more significant investments before ultimately disappearing with the funds.
• Dating App Scams: Fraudsters use dating platforms to lure victims, leveraging emotional manipulation to persuade them to invest in cryptocurrency.
• Fake Blockchain Gaming Apps: This involves scammers attracting victims by promoting fake blockchain-based games, promising profits from gameplay.

Protecting Your Cryptocurrency from Scams

With cybercriminals constantly honing their tactics, it’s critical for cryptocurrency investors to stay vigilant. Here are some FBI-recommended steps to reduce your risk:

1. Be Skeptical of ‘Too Good to Be True’ Investment Offers: If an investment opportunity promises unrealistically high returns, proceed with caution. Scammers often lure victims with guarantees of fast and easy profits.
2. Verify Platforms and Apps: Before engaging with any cryptocurrency platform or app, thoroughly research its credibility. Many scams operate under the guise of legitimate-looking websites and apps.
3. Secure Your Cryptocurrency Wallet: Always use two-factor authentication and keep your private keys secure. Scammers often target vulnerabilities in wallet security.
4. Have a chat with Bitdefender Scamio, our AI-powered scam detector, to help you determine whether a crypto opportunity or related-message is a scam. Simply describe the service and send its website link or a text from its website. Scamio will analyze the information and respond.

Scamio is available on Facebook Messenger, WhatsApp, and your web browser.

You can also help others stay safe by sharing Scamio with them in France, Germany, Spain, Italy, Romania, Australia, and the UK.