In 2023, Americans lost over $5.6 billion to cryptocurrency scams, a dramatic 45% increase from the year before, according to a new FBI report. The FBI received almost 70,000 complaints from people who had been tricked into financial fraud involving cryptocurrencies like bitcoin and ether. Investment fraud was the biggest problem, responsible for about $3.96 billion of these losses. This sharp rise in scams highlights how criminals are taking advantage of the growing popularity and complexity of digital currencies.
Scammers often exploit cryptocurrency’s decentralized nature and the fact that transactions are irreversible, making it hard to get stolen money back. They usually start by contacting victims through dating apps or social media, building a relationship over time before suggesting fake investment opportunities. Victims may be persuaded to use phony websites or apps, and in some cases, they are further deceived by fake recovery services promising to help them get their money back. The FBI advises everyone to be very cautious with investment offers from people they don’t know personally.
If you have a question about cryptocurrency, please contact Michael Haeberle at mhaeberle@pattersonlawfirm.com.