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April

The surge in cryptocurrency-related investment fraud has become a growing concern worldwide, with the United States Federal Bureau of Investigation (FBI) reporting a significant increase in losses attributed to crypto scams in 2023. The FBI says in the U.S. alone, there was a 53% spike in cases.
<a href="https://www.ic3.gov/Media/PDF/AnnualReport/2023_IC3Report.pdf" rel="noopener noreferrer nofollow">The FBI’s latest report</a> reveals a sharp rise in losses due to cryptocurrency-related investment fraud. There was a surge from $2.57 billion in 2022 to around $3.94 billion in 2023, representing a notable 53% uptick. These losses constituted a significant share of the overall investment fraud losses in the United States, comprising roughly 86% of the total losses reported for the year.
<h2 id="b-fbi-ranks-romance-scam-highest-b">FBI Ranks Romance Scam Highest</h2>
According to the FBI a growing number of the victims were being lured into crypto scams with promises of lucrative returns on their investments made. A prevalent type of crypto scam that has seen a significant surge in victims is romance scams.
The criminals in this instance, create fake online identities to establish trust with victims before persuading them to send cryptocurrency, only to make away with their investment capital. In December 2023, blockchain analytics firm Chainalysis reported that romance scams alone resulted in at least $374 million in suspected stolen cryptocurrency during the year.
<h2 id="b-investors-fall-victim-despite-warnings-b">Investors Fall Victim despite Warnings</h2>
The figures are worrying given that in 2023,<a href="https://thecoinrise.com/fbi-warns-investors-against-phishing-scams/" rel="noopener noreferrer nofollow"> the FBI had issued warning of phishing scams</a> and of individuals being lured by deceptive websites to connect their electronic wallets under the guise of acquiring or buying NFTs; however, they unknowingly connect to a deceptive smart contract designed to drain funds, resulting in the loss of their money or valuable assets.
It was reported that<a href="https://thecoinrise.com/scam-sniffer-reports-295-million-loss-320000-users-fall-victim-to-wallet-drainers-in-2023/" rel="noopener noreferrer nofollow"> over 320,000 crypto users fell victim to phishing scams in 2023</a>, resulting in approximately $295 million in digital assets being drained from wallets.
<h2 id="b-crypto-investment-fraud-a-global-pandemic-b">Crypto Investment Fraud – A Global Pandemic</h2>
The concerning trend of increasing cryptocurrency-related fraud is not confined to the United States, as other countries around the globe are also grappling with similar issues. So far, no continent seems to have been spared from crypto fraud. Last year, the Department of Justice<a href="https://thecoinrise.com/crypto-entrepreneur-faces-five-years-over-fraudulent-scheme/" rel="noopener noreferrer nofollow"> (DOJ) accused Crypto entrepreneur Peter Kambolin of defrauding investors</a> both at home and abroad.
In April 2023, the Australian Competition and Consumer Commission revealed that Australians lost 221.3 million Australian dollars ($146.9 million) to investment scams involving cryptocurrency as the payment method in 2022, reflecting a significant 162.4% increase from the previous year.
As cryptocurrency adoption continues to grow globally, regulators and law enforcement agencies are facing mounting challenges in combating fraudulent activities in the crypto space. Stakeholders in the crypto space have continued to advocate eternal vigilance as far as investments are concerned to avoid falling victim to phishing scams and other fraudulent groups.
The post <a href="https://thecoinrise.com/fbi-says-crypto-investment-fraud-skyrocketed-by-53-in-2023/" rel="noopener noreferrer nofollow">FBI Says Crypto Investment Fraud Skyrocketed by 53% in 2023</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

FBI Says Crypto Investment Fraud Skyrocketed by 53% in 2023

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