Key Takeaways
- • Cryptocurrency-related fraud losses totaled more than $5.6 billion in 2023, a 45% increase from 2022, according to the FBI's Internet Crime Complaint Center (IC3) report published September 9, 2024.
- • Cryptocurrency investment fraud accounted for roughly $3.9 billion, or almost 71% of all crypto-related losses, rising from $2.57 billion in 2022 to $3.96 billion in 2023 (a 53% increase).
- • Complaints reached 69,000 in 2023, and individuals over 60 reported the highest losses, exceeding $1.24 billion.
- • The FBI's Virtual Assets Unit, formed in February 2022, is the bureau's specialized team for investigating crypto-related crime, working with the Department of Justice and financial institution partners.
- • The IC3 urges victims to report fraud promptly at ic3.gov, including wallet addresses, transaction hashes, and communication details.
Summary
Losses tied to cryptocurrency fraud exceeded $5.6 billion in 2023, a 45% year-over-year increase, according to the FBI's Internet Crime Complaint Center (IC3) report published September 9, 2024. Complaints from the public continued their steady rise, reaching 69,000 in 2023.
Investment scams dominated the category. Most cryptocurrency complaints involved investment fraud, with losses of $3.9 billion, or nearly 71% of all crypto-related losses. The IC3 said losses from crypto investment fraud rose from $2.57 billion in 2022 to $3.96 billion in 2023, a 53% increase. In these schemes, criminals, often based overseas, use manipulation to persuade victims to deposit growing sums into fake investments, typically leaving victims with total losses. The report notes that many individuals have accumulated significant debt to cover these losses.
Demographic data show a distinction between complaint volume and dollar losses. Individuals aged 30-39 and 40-49 each filed roughly 5,200 cryptocurrency investment fraud reports, while complainants aged 60 and older reported the highest losses, over $1.24 billion.
The IC3 noted that cryptocurrency's decentralized nature, the speed of irreversible transactions, and the ability to move value internationally make it attractive to criminals and harder for victims to recover funds. Once a payment is sent, the recipient controls the asset, and funds are often quickly moved offshore. Other common schemes include tech support, confidence and romance, and government impersonation scams.
The FBI, working with the Department of Justice, law enforcement, regulators, and financial institutions, is pursuing perpetrators. The IC3 aggregates complaints to identify trends and shares them with FBI field offices and other agencies. The FBI formed its Virtual Assets Unit in February 2022 to centralize cryptocurrency expertise, including blockchain analysis and virtual asset seizure training.
Victims are urged to file reports at ic3.gov or contact local FBI field offices as soon as possible, even without a financial loss, and to include wallet addresses, transaction details, and communication records. The report also cautions against cryptocurrency recovery services that charge upfront fees, which may themselves be scams. Individuals aged 60 or older may call the National Elder Fraud Hotline at 833-372-8311 for assistance.
Investment scams dominated the category. Most cryptocurrency complaints involved investment fraud, with losses of $3.9 billion, or nearly 71% of all crypto-related losses. The IC3 said losses from crypto investment fraud rose from $2.57 billion in 2022 to $3.96 billion in 2023, a 53% increase. In these schemes, criminals, often based overseas, use manipulation to persuade victims to deposit growing sums into fake investments, typically leaving victims with total losses. The report notes that many individuals have accumulated significant debt to cover these losses.
Demographic data show a distinction between complaint volume and dollar losses. Individuals aged 30-39 and 40-49 each filed roughly 5,200 cryptocurrency investment fraud reports, while complainants aged 60 and older reported the highest losses, over $1.24 billion.
The IC3 noted that cryptocurrency's decentralized nature, the speed of irreversible transactions, and the ability to move value internationally make it attractive to criminals and harder for victims to recover funds. Once a payment is sent, the recipient controls the asset, and funds are often quickly moved offshore. Other common schemes include tech support, confidence and romance, and government impersonation scams.
The FBI, working with the Department of Justice, law enforcement, regulators, and financial institutions, is pursuing perpetrators. The IC3 aggregates complaints to identify trends and shares them with FBI field offices and other agencies. The FBI formed its Virtual Assets Unit in February 2022 to centralize cryptocurrency expertise, including blockchain analysis and virtual asset seizure training.
Victims are urged to file reports at ic3.gov or contact local FBI field offices as soon as possible, even without a financial loss, and to include wallet addresses, transaction details, and communication records. The report also cautions against cryptocurrency recovery services that charge upfront fees, which may themselves be scams. Individuals aged 60 or older may call the National Elder Fraud Hotline at 833-372-8311 for assistance.
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