FBI Reports Huge Crypto Fraud Surge in 2023

The FBI reported a significant rise in crypto-related fraud in 2023, reflecting the growing threat posed by scams targeting digital assets.

What's the scoop?

• Crypto Fraud Complaints: The FBI’s Internet Crime Complaint Center received more than 69K cryptocurrency-related complaints in 2023 comprising $5.6B in reported losses.  The total losses represent a 45% increase compared to 2022.  
• Investment Scams: Investment-related scams were the most frequently reported type of fraud. The FBI notes that while only 10% of the financial fraud complaints, the dollar amount represented 50% of the total funds impacted, suggesting that crypto investors were losing out on much larger sums on average. 
• Age Distribution: Individuals aged 60 and older filed the most complaints, followed by those in their 30s and 40s.  

Bankless Take:

The sharp rise in crypto scams, particularly targeting older and potentially less tech-savvy demographic groups, signals a growing problem that will likely worsen. The FBI’s focus on scams using QR codes highlights how bad actors continue to adapt, finding new ways to orchestrate their attacks. However, initiatives like the T3 Financial Crime Unit show that industry leaders are beginning to take steps to combat illicit activity. Ultimately, these scams not only impede the onboarding of new users but also tarnish the industry's reputation, making it harder for crypto to gain the trust and adoption it needs.