As a seasoned crypto investor with a few battle scars to show for it, I’ve seen the wild west of cryptocurrency evolve into a bustling metropolis over the years. The allure of easy money and untapped potential has attracted both visionaries and charlatans alike, making this digital frontier as exciting as it is risky.
2023 saw a significant increase in fraudulent activities linked to cryptocurrencies, as reported by the FBI. The amount of money lost due to these scams jumped an alarming 45% compared to the preceding year.
As crypto gains popularity in the United States, it also brings a rise in crypto scams. According to an FBI report released Sept. 9, the total losses to these scams exceeded $5.6 billion in 2023.
2023 saw over 69,000 reports of financial fraud related to digital currencies such as Bitcoin (BTC), Ethereum (ETH), and Tether (USDT) being filed with the FBI’s Internet Crime Complaint Center by concerned members of the public.
The majority of financial losses, amounting to approximately $3.96 billion, were due to investment scams, making up 71% of the total. Scams involving call centers and government impersonations accounted for around 10% of these losses as well.
It seems that people aged 60 and above are the group at greatest risk, as they submitted the largest number of complaints, totaling more than $1.6 billion in losses, according to FBI data.
Different types of crypto scams
As an analyst, I’ve observed that unscrupulous individuals frequently build trust through dating apps, social media, or other online platforms to deceive victims into investing in questionable cryptocurrency opportunities. The Federal Bureau of Investigation (FBI) has identified various types of scams, such as investment scams, lottery scams, romance scams, credit card fraud, extortion, and ransomware, that fall under this category.
In some cases, deceitful individuals may present themselves as romantic interests while secretly running scams known as “pig butchering” scams. This means they form relationships with their victims under false pretenses.
Initially, affected individuals might be permitted to take out minimal amounts as a trust-building measure, but eventually, they wind up losing more money. Sadly, in certain instances, supposed recovery services, which claim to recover their stolen assets, instead, end up taking advantage of these same victims once again.
Consider approaching online investment offers with utmost care, as even you could potentially fall victim, regardless of who you are. This advice is emphasized by the FBI.
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2024-09-09 22:06