The post Over 10% of financial fraud cases are crypto-related, FBI report reveals appeared on BitcoinEthereumNews.com.

Key Takeaways Crypto fraud in 2023 led to a 45% increase in losses compared to 2022. Victims over 60 were the most affected, with losses near $1.6 billion. The Federal Bureau of Investigation’s Internet Crime Complaint Center has released its Cryptocurrency Fraud Report for 2023, revealing a significant surge in losses due to crypto-related scams. Despite representing only 10% of total complaints received, crypto fraud accounted for nearly half of all financial losses reported to the FBI last year. Of the 69,000 crypto-related complaints filed in 2023, individuals over 60 were the most frequently targeted demographic, suffering losses of almost $1.6 billion. Investment schemes dominated the fraud landscape, accounting for 71% of reported cases, while call center fraud and government impersonation scams made up approximately 10% of incidents. Play-to-earn scams and crypto ATMs The FBI received complaints from over 200 countries, but the vast majority originated in the United States. Many losses resulted from confidence schemes, prompting the FBI to warn against trusting investment advice from individuals never met in person. The report also highlighted the risk of labor trafficking, where workers are lured into exploitative positions abroad, often in call centers running “pig butchering” scams. Other fraudulent activities threatening US citizens included play-to-earn scams and businesses falsely claiming to recover lost crypto assets. Crypto ATMs (kiosks) emerged as a significant vulnerability, with 5,500 cases resulting in losses exceeding $189 million. Scammers prefer these machines due to the anonymity of transactions, using them for various schemes including customer service fraud, extortion, and romance scams. James Barnacle, deputy assistant director of the FBI’s criminal investigative division, stated that chances of recovering funds lost through crypto kiosks are “slim.” He also revealed that when notifying fraud victims, 75% were unaware they had (already) been targeted. Security and regulation The report underscores the…

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Filed under: News - @ September 10, 2024 1:26 am