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Crypto fraud losses surge to over $5.6 billion in 2023, 45 percent increase from 2022: Report

Scammers have increasingly taken advantage of the swift and irreversible characteristics of digital asset transactions, says FBI
Crypto fraud losses surge to over $5.6 billion in 2023, 45 percent increase from 2022: Report
Investment scams associated with cryptocurrency accounted for 71 percent of all crypto-related losses in the past year. 

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.

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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