2023 Cryptocurrency Fraud Report Released
Estimated losses with a nexus to cryptocurrency totaled more than $5.6 billion
This chart depicts the amount of cryptocurrency complaints reported to the IC3 from 2017-2023.
Losses related to cryptocurrency fraud totaled over $5.6 billion in 2023, a 45% increase in losses since 2022, according to a report from FBI’s Internet Crime Complaint Center (IC3) published on September 9, 2024. The number of complaints from the public regarding cryptocurrency fraud continues to steadily increase, reaching 69,000 in 2023.
Cryptocurrency is a type of digital currency that you can use to buy goods or services or to invest. Examples of cryptocurrencies include bitcoin, ether, or tether.
As the use of cryptocurrency in the global financial system continues to grow, criminals are increasingly using cryptocurrency due to its decentralized nature, the speed of irreversible transactions, and the ability to transfer value around the world. Using cryptocurrency also makes it harder for victims to recover stolen funds. Once an individual sends a payment, the recipient owns the cryptocurrency. Recipients often quickly transfer that digital currency into an account overseas for cashout purposes.
Criminals can exploit cryptocurrencies in many types of criminal schemes. In 2023, most cryptocurrency complaints involved investment scams. These losses totaled $3.9 billion and accounted for almost 71% of all losses related to cryptocurrency in 2023. Other examples of scams associated with cryptocurrency include tech support, confidence and romance, and government impersonation scams.
Cryptocurrency investment fraud is the most common type of cryptocurrency scam. In this type of fraud, criminals use various means of manipulation to convince victims to deposit increasing amounts of money into financial "investments" using cryptocurrency. In truth, these investments are fake; criminal actors who are usually located overseas control—and ultimately steal—all victim money. As a result, victims typically lose everything they invested.
Losses from cryptocurrency-related investment fraud schemes reported to the IC3 rose from $2.57 billion in 2022 to $3.96 billion in 2023‚a 53% increase. Many individuals have accumulated massive debt to cover losses from these fraudulent investments.
Individuals aged 30-39 and 40-49 filed the most complaints related to cryptocurrency investment fraud (approximately 5,200 reports in each age group). But complainants over the age of 60 reported the highest losses (over $1.24 billion).
Learn more about the process behind cryptocurrency investment fraud.
The FBI, along with the Department of Justice, law enforcement, regulatory agencies, and financial institution partners, is dedicated to identifying the perpetrators of these schemes and bringing them to justice.
The FBI’s IC3 is the central intake hub for individuals in the U.S. or abroad to report fraud and cybercrime. The IC3 analyzes complaints and aggregates them to identify trends and help develop strategies to combat these schemes and protect scam victims from loss. IC3 also shares the complaints it receives with FBI field offices, other law enforcement agencies, and regulatory entities for further investigation or action, as appropriate.
In February 2022, the FBI formed the Virtual Assets Unit (VAU), a specialized team dedicated to investigating cryptocurrency-related crimes. The VAU centralizes the FBI’s cryptocurrency expertise into one nerve center, providing technological equipment, blockchain analysis, virtual asset seizure training, and other sophisticated training for FBI personnel.
If you believe you or someone you know may be a victim of cryptocurrency fraud, immediately submit a report to the IC3 via ic3.gov or contact your local FBI field office and provide as much transaction information as possible. We encourage you to submit a complaint through ic3.gov, even if a financial loss did not occur.
When submitting a report to ic3.gov, include as much as you can of the following information:
- Financial transaction details, including:
- Cryptocurrency wallet addresses
- The amounts and types of cryptocurrencies involved
- Date and time of the transactions, and transaction IDs (hash)
- Information about how you met the scammer(s)
- What platforms you used to communicate with the scammer(s)
- Any website address(es) involved in the scheme
- Any phone numbers or other identifiers you might have about the scammer(s)
You can refer to IC3’s public service announcement, "FBI Guidance for Cryptocurrency Scam Victims," for more information about what to report.
Individuals aged 60 or older can also contact the National Elder Fraud Hotline (833-372-8311) to assist with filing an IC3 complaint.
Tip: Be wary of cryptocurrency recovery services, especially those charging an up-front fee. They may be scams.
Tips and Red Flags to Protect Yourself
- Criminals will seek to instill a sense of urgency and isolation.
- When receiving an unsolicited call by an unknown caller claiming to work for a well-known company or government agency, hang up and independently research the company or agency’s publicly published phone number and call it to confirm the authenticity of the original call.
- No legitimate law enforcement or government official will call to demand payment via a cryptocurrency kiosk.
- Never give personally identifying information to anyone without verifying the person is who they say they are.
- Verify the validity of any investment opportunity that strangers or long-lost contacts offer you on social media websites. If you’ve never met an individual in real life, even if you’ve spoken on the phone or video-chatted, be very cautious about accepting investment advice or opportunities.
- Be on the lookout for domain or website names that impersonate legitimate financial institutions, especially cryptocurrency exchanges.
- Fraudulent businesses often use website addresses that mimic real financial institutions, but are often slightly different to convince people the fraudulent websites are legitimate.
- Don’t download or use suspicious-looking apps as a tool for investing unless you can verify the legitimacy of the app.
- If an investment opportunity sounds too good to be true, it likely is. Be cautious of get-rich-quick schemes.
- Investment involves risk. Individuals should invest based on their financial objectives and financial resources. If they’re in any doubt, they should seek advice from a licensed financial adviser.
