Cryptocurrency investment fraud cost Americans $5.6B last year
FILE-In this photo illustration, a visual representation of the digital cryptocurrency Bitcoin is displayed in front of a Bitcoin course's graph on February 13, 2024 in Paris, France. (Photo illustration by Chesnot/Getty Images)
Americans were scammed out of more than $5.6 billion in 2023 involving cryptocurrency fraud.
The Federal Bureau of Investigation said in a report that the agency received over 69,000 complaints last year from victims of financial schemes involving bitcoin, ether, and other cryptocurrencies. The FBI report released Monday shows a 45 percent jump in losses from 2022.
The most common scam was investment fraud, which accounted for $3.96 billion of the losses.
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Criminals involved in these investment frauds use dating apps, social media, and professional networking sites to build relationships with the people they are targeting, according to the FBI.
When a relationship is established between the scammer and the victim, the criminal will persuade the victim to use a phony website or app to invest their money in cryptocurrency.
In certain instances, victims are targeted by fake companies alleging they will help the individual retrieve the cryptocurrency they lost.
What should I do if I am the victim of cryptocurrency fraud?
If you or someone you know may have been the victim of cryptocurrency fraud, the FBI encourages people to submit a complaint through IC3.gov, even if a monetary loss did not happen.
The most essential information you can provide is details related to transactions. For cryptocurrency transactions, these details include cryptocurrency addresses, the amounts, and types of cryptocurrencies; transaction hashes; and the dates and times of the transactions. To find more information on what to report, click here.
How can I protect myself from cryptocurrency fraud?
- If you receive an unsolicited call by an unknown caller claiming to work for a well-known company or government agency, hang up the phone and research the company or agency’s publicly published phone number and call it to confirm the authenticity of the original call.
- The FBI says no legitimate law enforcement or government official will call to demand payment through a cryptocurrency kiosk.
- You should never provide personal information to anyone without verifying the person is who they say they are.
- It is also important to check the legitimacy of any investment opportunity someone offers on social media websites. If you have never met the individual in person, or even if you have spoken on the phone or held a video chat with the person, be careful of accepting investment advice or opportunities.