# Crypto scams bigger than ever before
The cryptocurrency industry may have lost its mainstream appeal since the crypto boom of 2021 to 2022, but that doesn’t mean the money isn’t still flowing. In fact, cybercriminals are using cryptocurrency to generate billions of dollars in fraudulent income each year. According to a recent report from the FBI, 2023 was the most lucrative year yet for cryptocurrency scammers, with over $5.6 billion in losses reported. This data comes from more than 69,000 complaints received by the FBI’s Internet Crime Complaint Center.
## The aftermath of the crypto boom
The FBI’s cryptocurrency scam report is particularly interesting because it covers the first full year following the crypto boom. The crypto industry was heavily impacted in 2022 when several crypto tokens collapsed, and major crypto firms like Celsius and Terraform Labs faced downfall. In November 2022, one of the largest crypto exchanges, FTX, even went bankrupt. Although some crypto tokens and blockchain-based companies have since recovered, the industry has not regained its previous mainstream appeal.
## Crypto scams on the rise
Despite the industry’s struggles, cryptocurrency scams continue to thrive. The FBI’s report reveals that crypto scams grew by 45 percent in 2023 compared to the previous year. In fact, losses from cryptocurrency scams now account for more than half of the total losses from all online scams reported in the FBI’s 2022 report.
## The biggest crypto scam: Investment fraud
According to the FBI, investment fraud is the most significant form of cryptocurrency scam. The report highlights a 53 percent increase in crypto investment scams, with losses totaling $3.96 billion in 2023 compared to $2.57 billion in 2022. This indicates that scammers are becoming more sophisticated and successful in targeting investors in the crypto space.
## Age demographics and scam impact
Different types of scams affect age demographics differently. The FBI’s report shows that individuals in the 30-39 and 40-49 age groups were most affected by crypto investment scams. However, the highest number of complaints and overall loss totals came from individuals over the age of 60. More than $1.6 billion in crypto-related scam losses were reported by this age group. It is crucial to note that the actual total of crypto scam losses is likely much higher than what is reported to the FBI, as the agency can only include data sent to them by the victims.
## Reporting crypto scams
FBI Director Christopher Wray emphasizes the importance of reporting crypto scams to combat these crimes. In the bureau’s statement on the report, Wray states, “Scams targeting investors who use cryptocurrency are skyrocketing in severity and complexity. The best way to help stop these crimes is for people to report them to ic3.gov, even if they did not suffer a financial loss.” Reporting incidents allows law enforcement agencies to stay informed about emerging schemes and criminals’ use of the latest technologies, enabling them to protect the public and pursue those responsible.
In conclusion, cryptocurrency scams remain a significant issue even after the crypto boom. The FBI’s report demonstrates the alarming growth of crypto scams and the financial losses they cause. Investors and individuals in the crypto space must remain vigilant and report any suspicious activities to authorities. By raising awareness and taking action, we can collectively work towards minimizing the impact of cryptocurrency scams on society.
## Topics: Cybersecurity, Cryptocurrency
For more information on cybersecurity and cryptocurrency, be sure to check out our articles on these topics.