The number of cryptocurrency-related complaints accounted for 10% of all financial fraud complaints but 50% of the total losses in 2023.
That is due in part to the use of crypto in investment scams that see victims accumulating “massive debt” to cover their losses, the Federal Bureau of Investigation (FBI) said in its Cryptocurrency Fraud Report 2023 released Monday (Sept. 9).
Overall, losses to financial fraud involving the use of cryptocurrency leapt 45% in 2023, rising to $5.6 billion, according to the report. The FBI’s Internet Crime Complaint Center (IC3) received 69,468 complaints from the public involving the use of crypto.
“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,” Michael D. Nordwall, assistant…
