Scammers have increasingly taken advantage of the swift and irreversible characteristics of digital asset transactions, says FBI
Losses attributed to cryptocurrency fraud and scams surged by 45 percent in 2023 compared to 2022, exceeding $5.6 billion, according to the latest report from the U.S. FBI. Scammers have increasingly exploited the rapid and irreversible nature of digital asset transactions.
The popularity of cryptocurrencies such as Bitcoin and Ether has risen as their prices reached new heights and exchange-traded funds tracking these assets entered the U.S. market this year, as noted by Reuters. However, this surge in interest has also led to a rise in criminal activities involving cryptocurrency, according to the FBI‘s Internet Crime Complaint Center.
⚠️ Scam alert: The #FBI’s new report shows a dramatic rise in cryptocurrency fraud, with losses hitting $5.6 BILLION. Stay informed, learn about scammer’s latest tactics, and protect yourself—read the report now at https://t.co/yNwEbIyeAs
— FBI (@FBI) September 9, 2024
Read more: $2.3 trillion crypto market reaches new heights, 95 percent more millionaires: Report
Although cryptocurrency transactions are recorded on publicly accessible blockchains, making it easier for law enforcement to trace funds, many transactions are swiftly transferred overseas. In these cases, U.S. authorities often face challenges due to weak anti-money laundering regulations in certain regions, the FBI reported.
Investment scams linked to cryptocurrency represented 71 percent of all crypto-related losses last year. Additionally, call center scams and government impersonation schemes accounted for 10 percent of the total losses. The FBI noted that the majority of complaints involving cryptocurrency came from individuals over the age of 60, with losses from this demographic exceeding $1.6 billion.
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