CryptocurrencyAmericans were duped out of more than $5.6 billion last year through fraud schemes involving cryptocurrency, the FBI said. Americans were duped out of more than $5.6 billion last year through fraud schemes involving cryptocurrency, the FBI said.
OF IT BACK. CRYPTOCURRENCY. IT’S BECOME A FAVORED TOOL FOR SCAMMERS BECAUSE THE MONEY YOU SEND TO THEM CANNOT BE TRACED, AND THE GROWING USE OF CRYPTO CURRENCY HAS PLACED CRYPTO SCAMS IN THE NUMBER FOUR SPOT ON MY LIST OF SCAMS FOR 2023, UP BY ONE SPOT FROM LAST YEAR. BAD GUYS ARE RUNNING A WHOLE BUNCH OF DIFFERENT SCAMS, BUT WHEN THEY START ASKING YOU FOR PAYMENT IN SOME KIND OF CRYPTOCURRENCY, THAT’S A SURE SIGN OF A SCAM. FOLKS. THOSE CRYPTO ATMS CROPPING UP IN CONVENIENCE STORES, GAS STATIONS, AND BIG RETAILERS. THERE’S SOMETHING THAT SCAMMERS ARE TRYING TO TAKE ADVANTAGE OF PRETENDING TO BE GOVERNMENT OFFICIALS, UTILITY AGENTS, OR SWEEPSTAKES REPRESENTATIVES. THEY DIRECT YOU TO PAY A FEE, A BILL OR A HANDLING CHARGE BY SENDING CRYPTOCURRENCY BOUGHT AT THESE ATMS TO AN UNTRACEABLE DIGITAL WALLET. AND ONCE YOU SEND THAT MONEY, IT’S IRREVERSIBLE. SO THERE’S NO WAY YOU’RE GOING TO GET THAT MONEY BACK. ACCORDING TO THE FEDERAL TRADE COMMISSION, NOBODY FROM THE GOVERNMENT, LAW ENFORCEMENT, A UTILITY COMPANY OR A CONTEST PROMOTER WILL EVER TELL YOU TO PAY THEM WITH CRYPTOCURRENCY. IF SOMEONE DOES, IT’S A SCAM. EVERY TIME DURING THE PAST YEAR, A STRICTER REGULATION OF CRYPTOCURRENCY HAS BEEN DISCUSSED IN WORLDWIDE FINANCIAL MARKETS. BUT THAT’S ALL IT’S BEEN HAS BEEN. TALK. MEANWHILE, CONSUMERS LIKE YOU SHOULD BE HIGHLY SUSPICIOUS OF ANYONE ASKING YOU TO TRANSFER MONEY USIN
Americans lost $5.6 billion last year in cryptocurrency fraud scams, the FBI says
Americans were duped out of more than $5.6 billion last year through fraud schemes involving cryptocurrency, the FBI said in a report released Monday that shows a 45% jump in losses from 2022.The FBI received nearly 70,000 complaints in 2023 by victims of financial fraud involving bitcoin, ether and other cryptocurrencies, according to the FBI. The most rampant scheme was investment fraud, which accounted for $3.96 billion of the losses.“The decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals, while creating challenges to recover stolen funds,” wrote Michael Nordwall, assistant director of the FBI’s criminal investigative division.Scammers will often make contact through dating apps or social media to build trust over several weeks or months before suggesting cryptocurrency investing, the FBI said. Once the relationship is built, they convince the targets to use fake websites or apps to invest their money, sometimes even allowing the victims to withdraw small amounts of money early on to make it seem legitimate.In some cases, those victims are then targeted by bogus businesses claiming they will help the victim recover the cryptocurrency they lost, according to the FBI.FBI officials say Americans of all ages can be a target of such scams and should be extremely cautious when presented with investment opportunities from people they’ve never met in real life.
Americans were duped out of more than $5.6 billion last year through fraud schemes involving cryptocurrency, the FBI said in a report released Monday that shows a 45% jump in losses from 2022.
The FBI received nearly 70,000 complaints in 2023 by victims of financial fraud involving bitcoin, ether and other cryptocurrencies, according to the FBI. The most rampant scheme was investment fraud, which accounted for $3.96 billion of the losses.
“The decentralized nature of cryptocurrency, the speed of irreversible transactions, and the ability to transfer value around the world make cryptocurrency an attractive vehicle for criminals, while creating challenges to recover stolen funds,” wrote Michael Nordwall, assistant director of the FBI’s criminal investigative division.
Scammers will often make contact through dating apps or social media to build trust over several weeks or months before suggesting cryptocurrency investing, the FBI said. Once the relationship is built, they convince the targets to use fake websites or apps to invest their money, sometimes even allowing the victims to withdraw small amounts of money early on to make it seem legitimate.
In some cases, those victims are then targeted by bogus businesses claiming they will help the victim recover the cryptocurrency they lost, according to the FBI.
FBI officials say Americans of all ages can be a target of such scams and should be extremely cautious when presented with investment opportunities from people they’ve never met in real life.