The FBI’s 2023 report reveals an alarming $5.6 billion loss due to cryptocurrency fraud, a 45% increase from the previous year. Although only 10% of the complaints received were crypto-related, these cases accounted for nearly half of the total financial losses.
Who is Most Affected?
Individuals over 60 were the primary victims, losing nearly $1.6 billion. Out of the 69,000 crypto-related complaints, 71% involved investment schemes, while 10% were linked to call center fraud and government impersonation.
Top Cryptocurrency Fraud Schemes:
1. Confidence Schemes: Scammers build trust with victims through online interactions before defrauding them. A key red flag is that these fraudsters rarely meet their targets in person.
2. Call Center Labor Trafficking: Some victims are forced into working at call centers running fraudulent schemes, such as “pig butchering,” where people are tricked into investing in fake projects.
3. Play-to-Earn Scams: Users are lured into buying tokens for online games, only to find their funds frozen afterward.
Risks of Crypto ATMs
The report also highlights that crypto ATMs enable fraud due to their anonymity. In 2023, 5,500 cases were reported, with losses totaling $189 million.
How to Protect Yourself:
1. Verify investment opportunities: Always conduct thorough research before transferring any funds. Be cautious of offers from people you haven’t met in person.
2. Avoid unsolicited offers: Scammers often reach out through cold calls, emails, or social media.
3. Use secure exchanges: Stick to reputable and regulated cryptocurrency platforms.
4. Beware of pressure tactics: Fraudsters often create a false sense of urgency to rush your decision. Consult a financial advisor before making any investments.
5. Monitor your accounts: Regularly check your crypto accounts and set alerts to detect suspicious activity.
Staying informed and following these precautions can help you avoid becoming the next victim of cryptocurrency fraud.
