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Crypto Scams Soar: FBI Reports $3.96 Billion in Losses

Crypto-Related Scams on the Rise: FBI Reports $3.96 Billion in Losses The Federal Bureau of Investigation (FBI) has released alarming statistics on the surge of crypto-related scams in the United States. According to their report, these scams have led to a staggering $3.96 billion in losses by 2023. The number of victims of crypto-related fraud …

Crypto-Related Scams on the Rise: FBI Reports $3.96 Billion in Losses

The Federal Bureau of Investigation (FBI) has released alarming statistics on the surge of crypto-related scams in the United States. According to their report, these scams have led to a staggering $3.96 billion in losses by 2023. The number of victims of crypto-related fraud has increased 11-fold since 2018, with an average loss per victim rising by 20% from last year’s $253 million.

The FBI’s Internet Crime Complaint Center (IC3) collects information from victims of investment fraud, which primarily targets individuals in their prime years, specifically those in the 30-50 age range. California residents have suffered the highest collective losses, totaling $984 million. In contrast, Maryland has the highest rate of investment fraud, with 14.4 cases per 100,000 residents.

The lack of regulation and anonymity in cryptocurrency has made it a prime location for scammers to thrive. The FBI is keeping a close eye on North Korean hackers who are gaining popularity among Bitcoin ETF issuers in the US.

The $3.96 billion lost due to crypto-related scams represents almost 87% of the $4.57 billion in investment fraud losses reported in 2023. It is crucial for investors to exercise caution when investing in cryptocurrency, particularly those that offer high returns or guarantees.

As the crypto market evolves, it becomes increasingly evident that people are being cautious and avoiding potential scams. Red flags to watch out for include:

* Unregistered investments
* Pressure to invest quickly
* Promises of guaranteed returns

Investors should always:

* Research the company and its operators
* Verify their credentials
* Be cautious of unsolicited investment advice

Despite the FBI’s success in addressing investment fraud, individuals must take measures to prevent them from being victims. Investing through caution and education can help prevent the spread of fraudulent schemes and put an end to the devastating increase in crypto-related scams.

As the crypto market continues to grow, it is imperative that investors remain vigilant and informed. For valuable insights and information on cryptocurrency and investment fraud, check out this article on CoinSeeks.com.

Remember, investing in cryptocurrency requires caution, research, and education. Stay informed, and stay safe!

Kaan Akdag

Kaan Akdag

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