This marks a 45% increase from 2022. Although crypto-related complaints made up just 10% of total submissions. They accounted for nearly 50% of the financial losses reported.
FBI Report: Seniors Most Targeted in Crypto Fraud
This age group alone lost almost $1.6 billion. Investment schemes were responsible for nearly 71% of the fraud cases, while call center fraud and government impersonation scams comprised about 10%.
Source: FBI Report
The majority of complaints and losses originated from the United States, although the FBI received reports from over 200 countries. Many victims fell prey to confidence schemes, where scammers build trust before defrauding their targets.
Additionally, the FBI warned about labor trafficking, where individuals are lured into exploitative positions abroad, such as at call centers. These scams often involve “pig butchering,” where victims are promised returns on investments that turn out to be fraudulent.
Play-to-earn scams also pose a significant threat. These schemes charge users for tokens needed to play online games but then freeze their wallets, trapping their funds. Another fraudulent activity involves businesses that falsely claim to recover lost cryptocurrency, further victimizing already defrauded customers.
The report notes that cryptocurrency kiosks, or automated teller machines (ATMs), have become a popular tool for scammers. The FBI recorded 5,500 cases involving kiosks, resulting in over $189 million in losses.
Scammers favor kiosks due to the anonymity they offer compared to traditional bank transactions. These cases included complaints about customer service issues, government impersonation, extortion, and romance scams.
Deputy Assistant Director James Barnacle of the FBI’s Criminal Investigative Division told ABC News that recovering money lost through crypto kiosks is “slim.” He added that the FBI notifies individuals when it discovers they are victims of fraud. Of the 3,000 people notified this year, Barnacle noted that 75% were unaware they had been defrauded.
Disclaimer
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