Cryptocurrency Fraud Cost Americans $5.6B Last Year

Americans fell victim to cryptocurrency fraud to the tune of over $5.6 billion last year, according to an FBI report released earlier in September. This figure marks a significant 45% increase in losses compared to 2022. The FBI recorded nearly 70,000 complaints in 2023 related to financial fraud involving cryptocurrencies like bitcoin and ether, with investment fraud accounting for $3.96 billion of the total losses.

Scammers frequently use dating apps or social media to establish trust over time before suggesting cryptocurrency investments. Assistant Director of the FBI’s criminal investigative division, Michael Nordwall, explained that the decentralized nature of cryptocurrency makes it appealing to criminals and complicates the recovery of stolen funds. Frauds often involve fake websites or applications, and the tactic of allowing victims to initially withdraw funds amplifies the illusion of legitimacy.

The FBI warns that scammers sometimes follow up with fake businesses offering to help recover lost cryptocurrency. This adds to the victim’s financial burden. The agency stresses that all Americans, regardless of age, need to remain vigilant when approached with investment opportunities from unknown individuals, particularly through online platforms. (This story was generated by Newser’s AI chatbot. Source: the AP)