The FBI reports a 45% increase in losses from cryptocurrency-related fraud in 2023, highlighting the growing risks for investors.
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| The FBI reports a 45% increase in cryptocurrency-related scams in 2023. The types of scams and how to protect yourself. Symbolic image |
New York, USA - September 10, 2024:
Cryptocurrency-related frauds and scams witnessed a significant surge in 2023, with losses increasing by 45% compared to the previous year. The Federal Bureau of Investigation (FBI) attributed this rise to the growing popularity and accessibility of cryptocurrencies, which have become attractive targets for criminal activities.
The FBI's Internet Crime Complaint Center (IC3) released a new report highlighting the increasing use of cryptocurrencies by scammers. While blockchain technology provides transparency, allowing authorities to trace funds, the rapid international transfer of crypto assets poses challenges in enforcement.
Investment scams, which involve fraudulent cryptocurrency offerings, accounted for a significant portion of the losses in 2023. These scams often target individuals over the age of 60, who reported losses exceeding $1.6 billion. Call center scams and government impersonation scams also contributed to the overall losses.
The FBI emphasized the ease with which criminals can exploit cryptocurrencies to facilitate illicit activities like theft, fraud, and money laundering. The elimination of financial intermediaries in crypto transactions creates opportunities for scammers to operate with relative anonymity.
As the popularity of cryptocurrencies continues to grow, it is crucial for individuals to be aware of the risks associated with scams. The FBI urges the public to exercise caution when investing in cryptocurrencies and to report any suspicious activity to law enforcement.