According to Blockworks, the Federal Bureau of Investigation (FBI) has reported a 53% year-over-year increase in cryptocurrency scams in 2023. The latest internet crime report revealed that investment fraud involving cryptocurrency rose from $2.57 billion in 2022 to $3.94 billion in 2023. Scammers entice their targets with the promise of lucrative returns on their investments. Online fraud losses totaled more than $12.5 billion in 2023, up 22% from 2022, according to data from the Internet Crime Complaint Center (IC3).
Business email compromise scams, which target both companies and individuals, accounted for $2.9 billion of total losses in 2023. The FBI found that email swindlers are increasingly using cryptocurrencies to facilitate their cons, with more illicit actors using exchanges and other third parties to collect funds from victims. The report noted that two-factor authentication is a helpful additional layer of security.
Despite the FBI's findings, blockchain analytics firm Chainalysis argues that funds stolen through crypto investment scams have been decreasing globally in recent years. Chainalysis analysts noted in their latest crime report that scamming revenues globally have been trending down since 2021. The firm acknowledged that not all crimes are reported, and romance schemes, in particular, are likely going under the radar. However, Chainalysis maintained that generally speaking, fraud is on the decline.
