According to the FBI, 2023 marked a record year for cryptocurrency fraud, with losses surpassing $5.6 billion.
This staggering figure is based on nearly 70,000 complaints submitted through the FBI’s Internet Crime Complaint Center (IC3). The losses represent a 45% increase from the previous year, driven largely by investment fraud, which made up 71% of the total cryptocurrency-related losses. Other significant contributors included tech support scams, call center fraud, and government impersonation.
U.S. citizens bore the brunt of these losses, accounting for $4.8 billion of the total. Other countries affected included the Cayman Islands with $196 million in losses, Mexico with $127 million, Canada at $72 million, the UK with $59 million, India at $44 million, and Australia with $25 million in losses. Within the U.S., California was the hardest-hit state, suffering $1.155 billion in damages. Texas ($412 million), Florida ($390 million), and New York ($317 million) also saw significant losses.
The FBI’s report highlights key fraud trends from 2023, particularly in the area of investment fraud. A growing trend involved the use of dating apps and professional networking platforms, where victims were lured into fraudulent “pig butchering” schemes. Scammers also used liquidity mining scams, promising victims high returns for staking their assets in fake liquidity pools.
Another emerging tactic involved fake blockchain-based gaming apps, where players were promised cryptocurrency rewards but were instead tricked into connecting their wallets to fraudulent platforms. Additionally, scammers targeted individuals who had already fallen victim to previous cryptocurrency schemes, offering fake recovery services that required upfront payments.
