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FBI Releases Crypto Warning in New Report

In 2023, the United States experienced a significant rise in cryptocurrency-related investment fraud, with the Federal Bureau of Investigation (FBI) highlighting it as the major source of investment fraud losses.

According to the FBI, the nation saw a staggering 53% increase in crypto investment fraud, with losses surging from $2.57 billion in 2022 to approximately $3.94 billion in 2023.

This figure constituted about 86% of the total $4.57 billion lost to investment fraud across the board.

The FBI report draws attention to the growing trend of victims being lured into cryptocurrency scams, promising them high returns on their investments.

“These scams are designed to entice those targeted with the promise of lucrative returns on their investments,” the FBI noted.

Among these, romance scams have emerged as a prevalent method, wherein criminals create fake online personas to build relationships and trust with their victims.

They then concoct compelling stories to convince the victim to transfer cryptocurrency, only to vanish subsequently.

The analysis firm Chainalysis, in December 2023, identified romance scams as the cause for at least $374 million in suspected stolen cryptocurrency during the year.

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Additionally, Cointelegraph reported on January 1 that phishing scams had ensnared over 324,000 cryptocurrency users, leading to approximately $295 million in digital assets being lost to wallet drainers in 2023 alone.

The issue of cryptocurrency scam victims is not confined to the United States; it is a global concern.

The Australian Competition and Consumer Commission reported in April 2023 that Australians had lost AU$221.3 million ($146.9 million) to investment scams involving cryptocurrency in 2022.

This marked a 162.4% increase from the previous year, indicating the expanding reach and impact of these scams worldwide.

The significant rise in crypto-related fraud underscores the urgent need for increased awareness and more robust protective measures for investors globally.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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