As the popularity of cryptocurrency continues to grow, so do the risks associated with it. In 2023, cryptocurrency-related losses totaled more than $5.6 billion, according to the Federal Bureau of Investigation’s Internet Crime Complaint Center (IC3). With over 69,000 complaints of financial fraud and crypto-related crimes received by the IC3, it’s clear that the need for vigilance in the digital currency space is more important than ever.

The latest report from the IC3 revealed a 45% increase in losses from cryptocurrency scams compared to 2022. The most common form of exploitation was in investment scams, which accounted for nearly 71% of all losses related to cryptocurrency.

Investment fraud schemes alone saw losses skyrocket from $2.57 billion in 2022 to $3.96 billion in 2023, marking a 53% increase. These scams often lure individuals with promises of high returns and low risks, only to disappear with their investments.

Aside from investment scams, other top crime times involving cryptocurrency included personal data breaches, tech support scams, and romance scams. Phishing scams and business email compromises linked to crypto also contributed to the staggering $5.6 billion in losses.

Despite the decentralized nature of cryptocurrency, making it difficult to track and recover stolen funds, the IC3 has outlined steps for individuals who believe they have fallen victim to a cryptocurrency scam. These include reporting the incident through IC3.gov, providing transaction details, and being cautious of cryptocurrency recovery services that charge upfront fees.

With the top three countries by complaint count being the US, Canada, and the UK, it’s clear that cryptocurrency scams are a global issue.

What to Do if You Are the Target of a Cryptocurrency Scam

Here are some recommendations from the IC3 for individuals who suspect they have been targeted by a cryptocurrency scam:

• Submit a complaint through IC3.gov, even if no financial loss occurred
• Include details of transactions, cryptocurrency addresses, amounts, transaction hashes, dates, and times
• Provide information about how you encountered the scammer and any communication platforms used
• Avoid cryptocurrency recovery services that charge upfront fees
• Individuals aged 60 or older can seek assistance from the National Elder Fraud Hotline

By reporting cryptocurrency scams promptly and accurately, individuals can help law enforcement investigate and combat fraudulent schemes that exploit the digital currency space. Stay vigilant, stay informed, and protect yourself from falling victim to cryptocurrency scams.