The FBI’s Operation Level Up Takes a Proactive Approach Against Crypto Scams
The FBI’s Operation Level Up began in January 2024, with support from the U.S. Secret Service, as a way to identify victims of ongoing cryptocurrency investment fraud and informing them of the scam. It has resulted in the notification of over 4,300 victims with an estimated savings of more than $285 million in the first year.
Over three quarters of contacted victims were unaware that they were being scammed, yet the FBI, using sophisticated investigative techniques, was able to identify the victims early on in these schemes.
Cryptocurrency investment fraud, also known as "pig butchering," is a confidence-based scam. In these types of scams, subjects target victims online and develop a friendship or relationship before introducing a fraudulent investment opportunity in cryptocurrency. Victims are coached to invest more and more money into what appears to be an extremely profitable platform, only to be unable to withdraw their funds.
“The old adage that ‘if it sounds too good to be true, it probably is,’ holds true for cryptocurrency,” said Brett D. Skiles, acting special agent in charge, FBI Miami. “As with any investment opportunity there are risks. Be smart, have your eyes wide open. Do your research up front. Understand the risks and be wary of scams. And if you do become a victim, don’t hesitate to contact the FBI.”
In 2023, the most recent year of compiled cryptocurrency statistics, Florida ranked second behind California for the number of complaints with over 5,000 from the Sunshine State. Losses in Florida by cryptocurrency fraud in 2023 exceeded $390 million. https://www.ic3.gov/AnnualReport/Reports/2023_IC3CryptocurrencyReport.pdf
These scams originated in Southeast Asia and are being perpetrated by organized crime groups operating from scam compounds in Southeast Asia, the Middle East, Africa, and South America.
Be aware of who you are communicating with online. Here are some signs you may be a victim:
- Meeting someone online or through an unsolicited text message and having that person pitch an investment opportunity.
- If the person requests to move the conversation to an encrypted messaging application.
- Claims of high returns and a pressure to quickly invest.
- If the person you’re talking to requests that you limit contact with financial advisors and family.
- Difficulty trying to withdraw your funds or being required to pay previously undisclosed fees and taxes to withdraw your funds.
If you think you are a victim of cryptocurrency investment fraud:
- Immediately stop sending money and file a report with the FBI's Internet Crime Complaint Center (IC3) as soon as possible. Crime reports are used for investigative and intelligence purposes. Rapid reporting can also help support the recovery of lost funds.
- Do not release any financial or personal identifying information or pay any additional fees or taxes to withdraw money you have invested in a potential scheme.
- Do not pay for services that claim to be able to recover lost funds, as these are often scams as well.
- One of the most common tactics these criminals employ is a false sense of urgency or isolation. For this reason, the FBI urges the public to "Take A Beat" by resisting pressure to act quickly, pausing for a moment, and assessing the situation. It’s better to be safe than scammed. For more information, visit fbi.gov/scams.
