Americans lost $5.6 billion to crypto fraud in 2023, says FBI report

The FBI's Internet Crime Complaint Center has released a report showing that Americans lost a staggering $5.6 billion to cryptocurrency scams in 2023, a 45% increase from the previous year. 

Although crypto-related complaints accounted for only 10% of all those received, they made up nearly half of the total financial losses. 

The report reveals that older Americans were the hardest hit, with those over 60 losing around $1.6 billion. 

Investment scams were the most common, comprising 71% of reported cases, followed by call center fraud and government impersonation scams, which accounted for about 10%. 

"There is one thing these scammers typically will not do—they will not meet with you in real life," the FBI warned, advising caution with investment offers from people you have never met. 

The agency also pointed to the rise of labor trafficking scams, where victims are tricked into working abroad in exploitative conditions, often in call centers running “pig butchering” schemes. 

These operations use foreign labor to execute complex scams and sometimes confiscate workers' passports or demand repayment for fabricated expenses. 

Cryptocurrency ATMs are also emerging as a major source of fraud, with the FBI logging 5,500 cases involving these kiosks that led to losses exceeding $189 million. 

Scammers favor crypto ATMs for their anonymity, exploiting them for schemes like extortion, romance scams, and impersonating government officials. 

James Barnacle, Deputy Assistant Director of the FBI's Criminal Investigative Division, highlighted the difficulty of recovering funds lost through these methods. 

"The chances of recovering money lost through a crypto kiosk are slim," he told ABC News. 

Barnacle added that many victims are unaware they have been scammed. 

"Of the 3,000 people we’ve notified this year, 75% had no idea they were victims of fraud," he said.