Cryptocurrency scams and fraud in 2023 contributed to an estimated $5.6 billion in losses, a report from one of the federal government’s top law enforcement agencies says.
The Federal Bureau of Investigation’s Cryptocurrency Fraud Report for 2023 found that the vast majority of losses – about $3.9 million – were related to cryptocurrency investment scams.
“The decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals, while creating challenges to recover stolen funds,” FBI Assistant Director Michael Nordwall wrote in the bureau’s latest report. “Once an individual sends a payment, the recipient owns the cryptocurrency and often quickly transfers it into an account overseas for cash out purposes. Rapid and accurate complaint reporting are key to assisting law enforcement in investigating fraud schemes that exploit cryptocurrencies.”
