Cryptocurrency-Related Fraud Losses Jumped 45% to $5.6B in 2023: FBI

Cryptocurrencies like bitcoin and ether have become more popular as token prices have soared to new highs and as exchange-traded funds tracking their prices have hit the U.S. market this year.

Cryptocurrency fraud losses surged 45% in 2023 to over $5.6 billion, largely due to the speed and finality of digital asset transactions, according to the U.S. Federal Bureau of Investigation (FBI).

The FBI's Internet Crime Complaint Center (IC3) highlighted the increasing use of cryptocurrency by criminal actors in its latest report.

While blockchain technology, which underlies cryptocurrencies, provides transparency in transactions, law enforcement faces challenges in recovering stolen funds, especially when they are swiftly transferred overseas.

"Since cryptocurrencies eliminate the need for financial intermediaries to validate and facilitate transactions, criminals can exploit these characteristics to support illicit activity such as thefts, fraud, and money laundering," the FBI noted in a statement.

Breaking down the losses, IC3 found that investment scams involving cryptocurrency were the most prevalent, accounting for 71% of all crypto-related losses in 2023.

Call center scams and government impersonation scams were also common, collectively contributing to 10% of the losses.

The FBI received the highest number of complaints related to cryptocurrency from individuals over the age of 60, with total losses exceeding $1.6 billion among this age group.

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