In 2023, crypto criminals stole a record $5.6 billion

The Federal Bureau of Investigation (FBI) has released a report stating that 2023 was a record year for cryptocurrency fraud cases and the amount of losses incurred. Overall, nearly 70,000 reports received by the Internet Crime Complaint Center (IC3) indicate losses exceeding $5.6 billion, a 45% increase compared to the previous year.

According to BleepingComputer, the primary reason for the rise in losses was investment fraud, which accounted for 71% of the total cryptocurrency losses. Fraudsters used various schemes, including the Big Butchering scheme, where victims were lured to fake investment platforms through dating apps and professional social networks. There was also widespread fraud involving liquidity mining, where investors were promised exceptionally high returns for placing assets in pools.

In addition to investment schemes, other methods of deception were actively used. These included fraud using call centers, impersonation of government officials or technical support, and the creation of fake gaming apps supposedly based on blockchain technology, promising players cryptocurrency rewards while gaining access to their wallets.

The majority of the losses ($4.8 billion) were incurred by U.S. citizens. The list of affected countries includes the Cayman Islands ($196 million), Mexico ($127 million), Canada ($72 million), the United Kingdom ($59 million), India ($44 million), and Australia ($25 million). Within the U.S., California suffered the most, with losses amounting to $1.155 billion, followed by Texas ($412 million), Florida ($390 million), and New York ($317 million).

The IC3 report explains that cybercriminals target cryptocurrency due to its decentralized nature and the existence of mechanisms that help obscure money transfers, as well as the technical impossibility for victims to reverse their transactions. The FBI advises being vigilant and "skeptical of investment promises that seem too good to be true." The agency also recommends verifying the legitimacy of investment platforms before investing and using independent cryptocurrency wallets for gaming and investment purposes.